Advantage Energy (AAV-T, yesterday’s close $12.10) rallied from $1.67 in January, 2021, to $12.00 in June, 2022, (A-B) while trading above the rising 40-week Moving Average (40wMA) and a rising trendline (dotted line). The stock ran into resistance near $12 for most of 2022 (shaded area), reversed the trend when it fell below the trendline and the 40wMA and declined to a low of $6.79 in 2023 (C). Shortly after, Advantage Energy had a recovery rally above the average and then settled in a horizontal trading range mostly between $8 and $12 (dashed lines). The recent rise above the top of this range signalled a breakout and the start of a new uptrend (D). Only a sustained decline below $10.50-11.00 would be negative.
Point & Figure measurements provide targets of $13.50 and $15. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com