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Valid Secondary Buy Point After Resilient at 10-Week Moving Average - Monday, October 21, 2013
A V G Technologies N.V. (AVG -$0.21 or -0.86% to $24.20) pulled back for a 2nd consecutive session. It has been "wedging" higher without great volume conviction behind recent gains and it finished Monday's session -8.9% off its 52-week high. It showed resilience and found prompt support after a damaging violation of prior highs in the $23 area and its 50-day moving average (DMA) line triggered technical sell signals. The deep pullback likely prompted disciplined investors to protect against more serious harm if they follow the investment system's rules and always sell any stock that falls more than -7% from their purchase price.
It had been highlighted in yellow with pivot point based on its 8/06/13 high plus 10 cents in the 9/13/13 mid-day report (read here). There was heavy volume behind its breakout and subsequent gains immediately after last shown in this FSU section on 9/13/13 with an annotated daily graph under the headline, "Rallying Near Pivot Point With Greater Volume Conviction".
The annotated weekly graph shows how the high-ranked Computer Software - security firm avoided finishing any week below its 10-week moving average (WMA) line. In the Certification they teach that if you miss an initial breakout from a sound base pattern, a secondary buy point exists between a stock's first successful test of its 10 WMA up to +5% above its latest highs. In this case, one may consider a valid secondary entry point anywhere up to +5% above the $26.56 high hit on 9/20/13. Remember, any stock which has been sold can be bought again if strength returns and, as always, disciplined investors would sell if the stock again falls more than -7% from their purchase price.
AVG showed strong sales revenues growth with earnings increases well above the +25% minimum guideline (C criteria) in the 4 latest quarterly comparisons through Jun '13. However, there is a sequential deceleration in its quarterly sales revenues increases. Earnings in FY '11 were flat versus the prior year, which is of some concern with respect to the A criteria. The number of top-rated funds owning its shares rose from 89 in Sep '12 to 180 in Sep '13, a reassuring sign concerning the I criteria. There is a small supply (S criteria) of only 29 million shares outstanding which can contribute to greater price volatility in the event of any institutional buying or selling.
Rallying Near Pivot Point With Greater Volume Conviction - Friday, September 13, 2013
A V G Technologies N.V. (AVG +$0.33 or +1.44% to $23.25) was highlighted in yellow with pivot point based on its 8/06/13 high plus 10 cents in the earlier mid-day report (read here). It rallied for a best-ever close with today's 3rd consecutive gain while approaching its 52-week high on the right side of a 6-week flat base above its 50 DMA line. Disciplined investors know that volume-driven gains above the pivot point are needed to first trigger a proper technical buy signal before action may be justified. Then they avoid chasing a stock more than +5% above the pivot point, and to protect against seriously harmful losses they always sell if any stock falls more than -7% from their purchase price.The high-ranked Computer Software - security firm showed strong sales revenues growth with earnings increases well above the +25% minimum guideline (C criteria) in the 4 latest quarterly comparisons through Jun '13. However, there is a sequential deceleration in its quarterly sales revenues increases. Earnings in FY '11 were flat versus the prior year, which is of some concern with respect to the A criteria.
The number of top-rated funds owning its shares rose from 89 in Sep '12 to 165 in Jun '13, a reassuring sign concerning the I criteria. There is a small supply (S criteria) of only 29 million shares outstanding which can contribute to greater price volatility in the event of any institutional buying or selling.
