Equities: Local | AVI | I’m a firm believer that combining a technical and fundamental view can create powerful insights for the investor and trader. That’s what influenced the thought process behind the previous warning that AVI appeared technically vulnerable and fundamentally out of sync with the macro SA backdrop. At a price of 10265c in January 2019, the share was developing a bear flag formation combined with a double top setup and traded on a lofty 19 times trailing earnings. With the economic deterioration over several months, the group (even with a very highly rated management team) has struggled to maintain it’s consistency as it released a trading update which reflected group revenue rising by just 1% and Headline Earnings Per Share to decrease between 3% and 5%.
AVI January 2019: Combining technicals + fundamentals: Sell AVI in 2019? – The R105 level is proving tough to remain above. Strong medium term trend (since 2014) but now ‘double top’ & potential ‘bear flag’. Below R94 the floor opens. PE is 19 (a bit rich considering the environment).
AVI 2020 – At current levels, the share has broken down in a new bear flag where the R80 level is key. A loss of this level would see R73.70 open up as a potential target zone.
AVI January 2019: Combining technicals + fundamentals: Sell AVI in 2019? – The R105 level is proving tough to remain above. Strong medium term trend (since 2014) but now ‘double top’ & potential ‘bear flag’. Below R94 the floor opens. PE is 19 (a bit rich considering the environment).
AVI 2020 – At current levels, the share has broken down in a new bear flag where the R80 level is key. A loss of this level would see R73.70 open up as a potential target zone.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.