Forging into the Technicals on Australian Vanadium Limited (ASX:AVL) as PI Reaches 1.20000
| Date: Dec 13, 2017 |
| Active investors may be taking a second look at shares of Australian Vanadium Limited (ASX:AVL). Checking in on some levels, the six month price index is currently at 1.20000. The six month price index is measured by dividing the current share price by the share price six months ago. A ratio above one indicates an increase in the stock price over the six month time frame. A ratio under one signals that the price has lowered over that same time frame.
Investors may be trying to define which trends will prevail in the second half of the year. As the markets continue to chug along, investors may be trying to maximize gains and become better positioned for success. Technical analysts may be studying different historical price and volume data in order to help uncover where the momentum is headed. Coming up with a solid strategy may take some time, but it might be well worth it in the long run. As we move deeper into the year, investors will be closely tracking the next few earnings periods. They may be trying to project which companies will post positive surprises. Traders might also be keeping an eye on the Piotroski Score or F-Score. The score is named after its developer Joseph Piotroski who created a ranking scale from 0-9 to help determine the financial strength of a company. Australian Vanadium Limited (ASX:AVL) currently has a Piotroski Score of 3. To arrive at this score, Piotroski gave one point for every piece of criteria met out of the nine considered. In terms of profitability, one point was given if there was a positive return on assets in the current year, one point if operating cash flow was positive in the current year, one point for higher ROA in the current period compared to ROA for the previous year, and one point for cash flow from operations greater than ROA. In terms of leverage and liquidity, one point was given for a lower ratio of long term debt in the current period compared to the previous year, one point was given for higher current ratio compared to the previous year, and one point if no new shares were issued in the last year. In terms of operating efficiency, one point was given for higher gross margin compared to the previous year, and one point was given for a higher asset turnover ratio compared to the previous year. In general, a stock with a score of 8 or 9 would be considered strong while a stock with a score from 0-2 would be considered weak. Investors may also be watching company stock volatility data. Australian Vanadium Limited (ASX:AVL)’s 12 month volatility is presently 64.697300. The 6 month volatility is 90.773200, and the 3 month is noted at 100.815000. Stock price volatility may be used to identify changes in market trends. When markets become very volatile, this may point to a change in investor sentiment. Watching volatility in combination with other technical indicators may help investors discover important trading information. |
