Friday 23 February-2024, 06h30 | AVI Ltd | Massive upside follow-though from the bull flag setup at R68 (published Monday 24 July). Now trading into resistance + negative divergence as per the 14-day RSI. Also noted is the share trading around 4x it’s average distance vs it’s 200-day SMA over the last decade. See the two charts below:
Anglovaal Industries (AVI) is a generalised producer of consumer products in the food, cosmetics, and apparel sectors. It has a diverse range of very well-known South African brands such as I&J fish, Five Roses tea, Salticrax, Frisco, Provita, Yardley, Spitz and Kurt Geiger. The company announced that it had sold its Australian sea food company Simplot for R633m...
Anglovaal Industries (AVI) is a generalised producer of consumer products in the food, cosmetics, and apparel sectors. It has a diverse range of very well-known South African brands such as I&J fish, Five Roses tea, Salticrax, Frisco, Provita, Yardley, Spitz and Kurt Geiger. The company announced that it had sold its Australian sea food company Simplot for R633m...
The stock has miraculously recovered after the March earnings release where it fell as much as -24%.
It's managed to work its way back above the 200dma and has now at overhead resistance. Price action here will be key to see if bulls have enough power to push through or fade. There is an upcoming dividend as well - LDT - 18th Oct .
After a strong bear market from 02.2018 to 03.2020 Avi has traded sideways.
Price seems to catch a bid between 5939 to 6060 with three single weekly candle lows in that region.
This has me pondering whether or not this price pattern is a triple bottom which is a strong reversal pattern.
Only time will tell.
AVI reached my previous buy/long target in a relatively short time frame (see original idea attached). My updated comment is as follows:
"The previous bull flag formation has played out with the shares moving into an ultra short term overbought range. A medium term demand supply zone is recognized, with the share having been rejected at this level on Friday....
AVI is one of several shares in my research report for today Monday 24 July 2023.
I'm monitoring this name for a potential bull flag technical formation.
For more research insights, including trade ideas, get in touch today.
AVI recently released a trading statement for the six months ended 31 December 2022.
The report was sobering at best and highlight various challenges the group is facing.
Key takeaways from the report:
Load shedding impact: back-up power added R22m to direct operating costs.
Currency/commodity volatility, high fossil fuel prices led to higher input costs.
Rising...
The share remains above its 200-week simple moving average.
Buy in weakness around 7710 (ideal entry).
The profit target is set at 8160 (which is the upper range of the linear regression channel pattern).
Stop-loss at 7590.
Low technical rating applicable.
Time exit around 31 January 2023.
Price is forming this triangle pattern. The stock is oversold on the weekly chart and a long pos can be taken on price breaking higher through the pattern. Key technical SR level at 7700. On my watchlist
We have a bullish flag on AVI. The stock battling with the 50 day EMA sandwiched between the 50 and the 200 day EMA at the back of a golden cross a few weeks ago. If the stock breaks out of the wedge. Closing above the 50 day EMA that would be a buy signal with a stop loss at R76.50 and a profit target of R89. Assuming an R81 buy price.
Risk R4.5
Potential...
Our trading desk was long this one prior to Friday's massive move.
I also published the idea just over 3 months ago on 27 May, with the potential price path denoted on the chart.
Original long idea (with envisioned trajectory) attached.
For more high quality insights, a differentiated perspective and real-time trade ideas, get in touch today.
With SA retail once again brought to it's knees, we do have some (unfortunate) opportunities, especially with our food producers. With supply chains disrupted and store shelves empty, we can only expect the "re-stocking" to benefit our brand owners and food producers. This is a buying opportunity for unusually high demand when the looting is over. Buy AVI at...
JSE:AVI has bounced off of the support level at around 7000 numerous times since early 2020. It is struggling to make lower lows, so my prediction would be that it continues upward towards the 7550 area or at least to around the 200SMA.
