Avalon Rare Metals
An under-$10 stock in the metal mining complex that looks ready to skyrocket higher is Avalon Rare Metals (AVL), a Canada-based mineral exploration and development company. Avalon's primary focus is on rare metals and minerals, including tin, lithium, tantalum, niobium, cesium, indium, gallium, zirconium and calcium feldspar. This stock is off to a weak start in 2012, with shares off by around 30%.
If you take a look at the chart for Avalon Rare Metals, you'll notice that this stock was hit hard by the bears, with shares plunging from its March high of $3.16 to a recent low of $1.36 a share. During that monster move to the downside, shares of Avalon Rare Metals were consistently making lower highs and lower lows, which is bearish price action. That said, this stock has started to form a major bottoming pattern during the last two months, with buyers stepping in to defend the stock at around $1.36 to $1.40 a share. Now this stock is quickly moving within range of triggering a near-term breakout trade.
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