The AVI setup is a bit weaker than the one for WHL posted earlier. The stock has chopped along sideways in consolidation mode for most of 2015 despite touching all time highs in March 2015. But the weekly trend remains bullish on balance and with the retracement on the daily charts pushing the stochastic oversold, the bullish reversal setup by the daily candles (very similar to WHL) presents a good potential long setup.
Support and resistance zones also look quite interesting. The stock appears to be at the base of downward sloping channel with a support zone around the R76.00 level where the stock is currently reversing off and resistance areas at R80.00 and then at the top of the channel at around the R83.00 level currently.
Setup details as follows: Enter long on a break of Friday's candle high at around R78.00 with a stop being a close below the R75.50 level and an initial target at R83.50. This yields a 2.2-1 reward-risk ratio. Important to keep an eye on the R80.00 level or potential resistance.
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