AVZ exploring for lithium in the DRC has been a well 'promoted' stock which valuation wise clearly overreached the project stage.
Chart wise it appears that fear and tax loss selling are in control currently and are likely to define the action over the coming weeks, this may present a trade opportunity for entry at the historical support level or 10c, should this present the primary exit target is at the lower end of the resistance range at 13.5c (+35%) with a stretch target at the upper range at 15c (+50%)
At 10c the company is around the $200m MC with a strong cash backing to further progress what is clearly a challenging project with a large prize
Chart wise it appears that fear and tax loss selling are in control currently and are likely to define the action over the coming weeks, this may present a trade opportunity for entry at the historical support level or 10c, should this present the primary exit target is at the lower end of the resistance range at 13.5c (+35%) with a stretch target at the upper range at 15c (+50%)
At 10c the company is around the $200m MC with a strong cash backing to further progress what is clearly a challenging project with a large prize
Comment:
Target entry shifted to 8c after director sell off