Trading AVI: Long/Short

Lester Davids

Feb 72 min read

Trade the AVI with Unum Capital.

To get started, email lester@unum.co.za

This share has given traders opportunities on both the long (buy) and short (sell) side, both of which we have discussed.

We called the overbought conditions pre-market on 11 November. This was the same day which it peaked at 12500c. A few days before that (06 Nov), the time-stamped price action model alerted us to expect a retracement/pullback (scrolls further down to see).

As of yesterday's close, this is worth noting:

Approaching prior swing lows
Has ALREADY experienced an aggressive short term sell-off, which appears to be near the tail end.
The model is alerting that the reward-to-risk is becoming attractive for a small buy/long position however, we should wait for the lower time frames to stabilize.
I am expecting: (1) the share to trade lower, but to potential reclaim the prior session or range lows, build a base, then develop a short term bullish reversal.
As of yesterday's close, this is what the model said:

Previous Post: AVI LTD Strong Rejection At Multi-Year Swing Highs. Well Done, Short Sellers

This is an updated chart which reflects the price reaching the pre-determined sell range (R123), which was followed by a strong bearish rejection down to R102. Well done, short sellers.