Breakout Play: Avalara

Upside breakout from a rectangle pattern.

New Highs 1

On Thursday, Avalara (AVLR), a provider of software for compliance solutions, broke out to the upside of its 144.00 resistance level and closed above it, making a new all-time high.  

Looking at a daily chart,
Avalara's stock price broke out to the upside of a rectangle pattern that price has been bouncing around inside of since mid-June. The RSI shows bullish momentum and has just entered overbought territory holding above 70. Price will likely hold its momentum and advance further towards the first Fibonacci target of 168.00. Price will probably find resistance at 168.00 and dip down before breaking out above 168.00. If price gets above 168.00, then it should clear a path to the second Fibonacci target of 181.00. If price cannot hold above its new support level of 144.00 traders should not be to worried as price could bounce off of 133.00, which was a strong level inside of the rectangle pattern. However if price falls below 133.00, it could slip back to 114.00, where a rebound is possible but less likely. If price falls under 114.00, it would be a bearish signal that could send prices even lower.       

Source: GAIN Capital, TradingView

More from Technical Analysis


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.