Danavation Technologies Corp. (DVN:CSE; DVNCF:OTCQB) is an interesting and innovative company that has developed the technology to enable full real-time automation of retail and other pricing, which eliminates much of the work involved in this and also the delays that were inherent in the process.
We are looking at it here because, after the completion of a large base pattern, it looks ready to advance in a new bull market.
On the 2-year chart, we can see that after it came to market early in 2021, it spiked and then dropped back almost as fast as it went up before sloping off into a bear market. The significant rally late in 2021 looks like a relief rally within an ongoing bear market, for it then went into reverse again and dropped back further in another long downtrend that brought it down to hit bottom a little below CA$0.20 in the middle of this year.
After that, it moved sideways, marking out a base pattern before starting to pick up last month.
On this chart, we can see that all of the action this year has taken the form of a Bowl base pattern, with the price dutifully adhering to and finding support at the Bowl boundary. The now more steeply rising Bowl boundary promises a breakout into a bull market soon, which is made more likely by the uptrending Accumulation line shown at the top of the chart that is already making new highs. The low volume for most of this year is typical of a Bowl or Saucer pattern, and the pickup in volume as it has started to rise out of the Bowl last month is bullish.
On the 6-month chart, we can see recent action in more detail. Positive points to note are the strong volume as it blasted through the 200-day moving average last month, which drove the Accumulation line sharply higher, and the way volume has died right back as the price has consolidated in recent days is also bullish and suggests that a bull Flag is forming and it appears to be waiting on the completion of a financing which looks set to happen soon.
The moving averages are rapidly closing on each other, and it is clear that another significant upleg will quickly result in a cross of the averages, marking the start of a new bull market.
With a bull Flag believed to be completing and another upleg looking likely soon, Danavation is rated an immediate Buy here for all timeframes.
Danavation Technologies Corp.'s website.
Danavation Technologies Corp., closed at CA$0.295, $0.25 on September 9, 2022.
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CliveMaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
Disclosures:
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
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