Thursday, January 7, 2016
AVP Chart - 01/07/16
Ever since I wrote my overly optimistic piece on AVP for Seeking Alpha here, the stock has been tumbling. In my defense, my article was written on the premises of management making smart decisions to cut costs and draw out shareholder value, which hasn't happened. I still believe AVP could do very well under the right leadership, but this blog is about technicals and not fundamentals, so here you go:
The next support level for the stock is at $2.50, which is also its all time low. I am almost certain the stock will retest this level in the next few days. Once it does, I believe it might present a nice short term buying opportunity, as AVP has a habit of bouncing off key levels a few times before breaking them. So, a nice short term play could be shorting at $3, covering at $2.50ish, going long at $2.50ish, and selling at $2.80ish. That is just my two cents… as always, place stops to protect your capital!