We have been following the AVI distribution since the beginning of the year (see posts below). We are now in the markdown phase. Price has found some support at 8500 but is looking like selling pressure could push it through this level. The 200 day MA has been tested and we see an increase in volume on down bars as it pushes up against 8500. Watching for the break lower.
Dear Trader
FMCG Group AVI has always been a market leader, with management lauded for their strong capital allocation skills and producing some of the best fundamental metrics over the long term.
Recently the price has taken a knock (along most retailers) from a peak of around R96 to its recent low of R79.39. The price currently trades at the lower boundary...
The year has started poorly for AVI (see posts below) and it looks set to get even worse. After a distribution trading range (TR) and back up to the range the markdown is set to begin.
AVI has been ranging since the beginning of the year. However, this looks like a distribution range. The declines with in the range have wider bars and sharper declines than any previous declines since listing. The last decline was on high volume and the attempted rally seems to be failing at the Yearly Pivot Point. Will be watching for price action and if the...
