Avalara, Inc. (AVLR) is a leading provider of tax compliance automation for businesses and it has been a "hot" new issue, in my opinion. We don't have a lot of trading history to work with but let's check the charts.
In this daily bar chart of AVLR, below, we can see that prices have had a huge run from $30 back in November and December to around $85 now. Incredible. After a $30 rally from December we can see what is probably a measuring gap in early May. If we are right about this kind of price gap then the pattern measures to around $95 to match the $30 rise before the gap.
Prices are above the rising 50-day moving average line as well as the 200-day line.
The On-Balance-Volume (OBV) line shows only a temporary rise in January but from May we have seen a stronger reaction. Trading volume was heavy in February and March, and again since May.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but narrowing towards a possible bearish crossover.
In this Point and Figure chart of AVLR, below, we can see an upside price target of $90 or a triple from the December lows.
Bottom line strategy: If I was long AVLR I would look to be a profit taker in the $90-$95 area.
