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Avalon Advanced Materials Inc T.AVL

Alternate Symbol(s):  AVLNF

Avalon Advanced Materials Inc. is a Canadian-advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. Its Lake Superior Lithium Project is in the City of Thunder Bay, Ontario. Lake Superior Lithium Project is located between northern Ontario’s lithium deposits and southern EV battery plants. Through its joint venture with SCR-Sibelco NV, it is developing its Separation Rapids lithium deposit near Kenora, ON, while also continuing to advance the Snowbank lithium and Lilypad lithium-caesium projects. It is also working to develop its Nechalacho rare earths and zirconium project located in the Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defense industries, among other sectors. Its East Kemptville Tin-Indium Project is located 55 kilometers northeast of Yarmouth, Nova Scotia, Canada. Nechalacho Rare Earth Elements Project is located at Thor Lake, Northwest Territories.


TSX:AVL - Post by User

Post by Swordplayon Sep 12, 2009 12:55am
469 Views
Post# 16299896

Unhealthy correction

Unhealthy correction

The way you can tell if a correction is healthy is by the initial decline.  In a healthy correction, the intial decline convexes upward and usually at least touches its Fib 0.382 ratio before making a bounce.

 

For the past few days, AVL has been behaving very unhealthily.  Look at the past 3-4 candlesticks.  You can see that the initial decline concaves upward.  Also, you can see that AVL barely touched its Fib 0.382 ratio ($3.28/shr).  AVL only went down to about $3.30/shr before bouncing back to $3.65.  Clearly, this is unhealthy behavior.  I get the impression that prices are artificially propped up to aid in "last minute" selling.  A healthy correction would have AVL go down to something like $3.25/shr before making a comeback in upwards of $3.90/shr.  Sure, you might think a $0.05/shr difference in the recent lows is trivial.  But, the Fib. 0.382 level never lies, and failure to cross it during the intial decline is a sign of artificial conditions. 

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