Dear Trader
FMCG Group AVI has always been a market leader, with management lauded for their strong capital allocation skills and producing some of the best fundamental metrics over the long term.
Recently the price has taken a knock (along most retailers) from a peak of around R96 to its recent low of R79.39. The price currently trades at the lower boundary of the channel that has been in place since December 2017 and could offer an opportunity for traders to participate a short term rebound. The RSI is printing a small bullish divergence while attempting to break out of an oversold zone. The R86.75 level is prior support which may now act as resistance and could act as a target from around current levels.
Trade Plan For AVI:
Buy at R80.70 or (lower)
Stop-loss: R77.15
Take Profit Target: R85.95