All trading involves risk. Ensure you understand those risks before trading.
All trading involves risk. Ensure you understand those risks before trading.

Breakout Play Avalara

Article By: ,  Financial Analyst

Breakout Play: Avalara

On Thursday, Avalara (AVLR), a provider of software for compliance solutions, broke out to the upside of its 144.00 resistance level and closed above it, making a new all-time high.  

Looking at a daily chart,
Avalara's stock price broke out to the upside of a rectangle pattern that price has been bouncing around inside of since mid-June. The RSI shows bullish momentum and has just entered overbought territory holding above 70. Price will likely hold its momentum and advance further towards the first Fibonacci target of 168.00. Price will probably find resistance at 168.00 and dip down before breaking out above 168.00. If price gets above 168.00, then it should clear a path to the second Fibonacci target of 181.00. If price cannot hold above its new support level of 144.00 traders should not be to worried as price could bounce off of 133.00, which was a strong level inside of the rectangle pattern. However if price falls below 133.00, it could slip back to 114.00, where a rebound is possible but less likely. If price falls under 114.00, it would be a bearish signal that could send prices even lower.       



Source: GAIN Capital, TradingView

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

© City Index 2024