Oil micro cap #3: AVLN.OB

Medium term chart:

Motive to buy: «I have a special feeling to recognize and trade speculative bubbles. I've seen several of them and they always work the same way.

After a bull market we're entering a speculative bubble in oil and oil stocks. Usually the bubble accounts for 50% of the move of the entire bull market in 10% of the time. So I can historically and generally expect the oil index ($OIX in www.stockcharts.com) to rise some 50% in the next 4 months or so (100% for the people who bought at the beginning of the bull market in oil stocks), with the price of the barrel of oil itself to reach something north of $80.

Like I said, I've seen many speculative bubbles come and go ... and I can tell you, in the final months of the bull market, in the bubble territory, every stock that is in some way or another related to the sector will explode higher. It is a catching up phenomena, in the end investors look in the garbage and find many small and micro cap stocks forgotten, lying on the floor and they pick them in rage.»

I'll buy AVLN.OB at tomorrow's open.

Everyday I will analyze AVLN.OB after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.

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