AVM daily 22/05/13
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Avocet Mining looks to be in a pretty bad way with no sign of the downtrend in sight. It's continued to make lower lows and lower highs and the bullish RSI divergence pattern which gave the last rise to 16.75p has broken down. In fact (and thanks to rcmacf for this), the lower high at 16.75p came with a higher high in RSI which is known as a Momentum Discrepancy Reversal Point (MDRP) and is an indicator of trend continuation.
The only respite here is that fact that the nearby figure of 11.5/12p was where the SP sat for 3 months at the end of 2001 into early 2002 so there is a support there albeit from a long time ago. If that fails then there's no knowing where this will go as there are no supports below there that I can see.
Should 11.5/12p hold then look for a bounce followed by a higher low and then buy the breakout to a new high. It's the safest way to enter a falling share. Even then the first resistance should be sold as it is not a guarantee of a new
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