It would appear that the technical position of Advanced Oncotherapy (LSE: AVO) has been set fair over the recent past in the sense that the July near vertical breakout for the shares, through 3p zone was a clear impulsive event.
This was then followed by a classic 50 day/200 day moving average golden cross buy signal for September, something which has propped up the price action ever since. However, it cannot be denied that the shares are currently in consolidation mode, given the retreat from a September/October double top reversal which peak through 5.5p.
Nevertheless, one can say the technical glass here is half full rather than half empty on the basis that we have had multiple support points well above the 200 day moving average at 3.55p ever since the autumn. All of this would go to suggest that one should be prepared for a fresh leg to the upside over the next 1 to 2 months, with any dips towards the 200 day line regarded as buying opportunities.
At this stage only a weekly close back below the 200 day line would delay the prospect of a partial or even full retest of the September peak for the first quarter of 2015. Given the higher low and the higher high for January to date, it may be that aggressive traders would wish to use an end of day close above the initial January resistance at 4.3p as their momentum buy trigger.
