Tech Co. poised for ascension into new bull market

Expert Clive Maund reviews Danavation Technologies Corp. after completing a large base pattern to see if he thinks it’s a buy.


Danavation Technologies Corp. (DVN:CSE; DVNCF:OTCQB) is an exciting and innovative company that has developed the technology to enable full, real-time automation of retail and other pricing, eliminating much of the work involved and also the delays inherent in the process.

We are considering it here because after completing a major base pattern, it seems poised to move into a new bull market.

Looking at the 2-year chart, we can see that after it hit the market in early 2021, it peaked and then fell back almost as fast as it was rising before falling into a bear market. The significant rally in late 2021 looks like a recovery rally within an ongoing bear market, as it then reversed again and fell further back in another long downtrend that took it to a low of just under CA$0.20 midway through this year.

After that, it moved sideways and marked a basic pattern before starting to rise in the 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 price dutifully holding onto and finding support at the bowl boundary. The now steeper rising bowl boundary promises a bull market breakout soon, made more likely by the uptrend accumulation line at the top of the chart already making new highs. The low volume for most of this year is typical of a bowl or saucer pattern, and the increase in volume as it started to climb out of the bowl last month is bullish.

On the 6-month chart, we can see the recent action in more detail. On the positive side, the strong volume that blasted through the 200-day moving average over the past month, which pushed the accumulation line sharply higher, and the way the volume waned right back when the price moved into the Consolidating in the past few days is also bullish, suggesting that a bull flag is forming and appears to be awaiting the close of a financing which is likely to occur soon.

The moving averages are fast approaching and it is clear that another significant upleg will quickly lead to a cross of the averages, marking the beginning of a new bull market.

As a bull flag is considered complete and another uptrend is likely soon, Danavation is rated here as an immediate buy for all timeframes.

Danavation Technologies Corp. website

Danavation Technologies Corp., closed at CA$0.295, $0.25 on September 9, 2022.


Would you like to be the first to hear about interesting topics? technology investment ideas? Sign up to receive the FREE Streetwise Reports Newsletter.

Subscribe to

CliveMaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund based on the information available to him at the time of writing. Mr. Maund’s opinions are his own and do not constitute a recommendation or an offer to buy or sell any security. Mr. Maund is an independent analyst and does not receive any compensation from the groups, individuals or companies mentioned in his reports. Because trading and investing in all financial markets can involve a serious risk of loss, Mr. Maund recommends that you consult a qualified investment adviser licensed by the relevant regulatory authorities in your jurisdiction and conduct your own due diligence and research, if you make any types of investments a transaction with financial implications. Although Clive Maund is a qualified and experienced stock market analyst, he is not a registered securities advisor. Therefore, Mr. Maund’s opinions about the market and the shares cannot be construed as a solicitation to buy or sell securities unless they are subject to the prior approval and approval of a registered securities adviser acting in accordance with the relevant regulations in your jurisdiction.

Disclosure:
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 or members of my immediate household or family are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are Streetwise Reports billboard sponsors: none. Click here for important information on sponsorship fees. As of the date of this article, a Streetwise Reports affiliate has a consulting relationship with: Danavation Technologies Corp. Please click here for more information.

3) Statements and opinions are those of the author and not of Streetwise Reports or its officers. The author is solely responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports has not been paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose ownership or commercial affiliations with companies they write about. Streetwise Reports relies on the authors to provide this information correctly and Streetwise Reports has no way of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult their financial professional and any action a reader takes on the information presented herein is their own responsibility. By opening this page, each reader accepts and agrees to the Streetwise Reports Terms of Service and Full Legal Disclaimer. This article is not an invitation to invest. Streetwise Reports does not provide general or specific investment advice and the information in Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the businesses, products, services or securities of any company mentioned in Streetwise Reports.

5) From time to time Streetwise Reports LLC and its directors, officers, employees or their family members and persons interviewed for articles and interviews on the website may have a long or short position in the securities mentioned. Directors, officers, employees or their immediate family members are prohibited from making any purchases and/or sales of such securities, over the open market or otherwise, from the time they decide to publish an article until three business days after the article is published. The foregoing prohibition does not apply to articles that essentially only reproduce previously published company announcements.

Leave a Comment