Technical Analysis Avalon Technologies Ltd.

The stock $AVALON is currently in a very powerful uptrend. After a period of correction and moving sideways between January and March it has bounced back aggressively. It is clearly making higher highs and higher lows, which is a classic sign that buyers are in full control. Recently broke past its previous major resistance zone around the 1200 to 1300 levels. By pushing to 1520.50 the stock has entered a blue sky breakout phase. This means it has crossed its historical hurdles and currently faces no major past resistance above it. It is the currently trading in a very strong bullish trend near the 1520 level having entered a blue sky zone with no historical price hurdles above it. Because the stock is making new highs the immediate resistance it faces is based on psychological round numbers starting at the 1600 mark where some traders might book short-term profits. If the strong buying momentum continues and crosses this level the next major resistance targets are expected in the 1750 to 1800 zone. On the downside if the price drops for a healthy correction the immediate support floor is between 1350 and 1400. Below that, the strongest structural support lies in the 1250 to 1300 range. This area was a heavy resistance wall earlier but has now flipped into a strong safety net where buyers are likely to step back in. As long as the stock stays above 1300 on a daily closing basis the overall setup remains highly positive. For existing holders it is best to stay invested and ride the strong bullish momentum while keeping a trailing stop loss around the 1350–1400 zone to protect profits. For new short-term buyers chasing the stock at its current peak carries a higher risk of immediate profit-booking. It is much safer to wait for a minor dip or consolidation closer to the 1400 support level to get a better risk-to-reward ratio for potential targets near 1600 and 1750.