Avon Products $AVP has been rallying sharply and consistently in the past couple of weeks after an announcement of restructuring and essentially a promotion from a high-profile hedge fund manager. Nonetheless, the market is convinced there is something there. After all, AVP was at historical lows around $1.35 at the end of 2018. So, at least the market is convinced AVP is undervalued, even if it does not believe in much more upside then in the short-term. Avon Products Inc. (AVP) To Truly Test Price Bottom at $3.00 per Share AVP Daily Chart (click to enlarge) Clear Breakout; Potential Dump:- There was some resistance at $3.00 at first. - But price came down and respected a support pivot around $2.35 and then jumped up to clearly break above $3.00 by the end of the week.- This is a key breakout, and convinces me that there is some upside at least in 2019. We might even see price go up to $6.00.- For me, the upside should be limited to $7.00. - While there is potentially a lot of head room for AVP, I am concerned about a sharp pullback simply because this rally was publicized and promoted by Bill Miller, who by the way was a big bitcoin investor. - I have a feeling we need to be prepared for a pump and dump here when price approaches or reaches the 200-day simple moving average (SMA) around $3.65. - Note that even without any "intuition" about a pump and dump, the RSI on both the daily and weekly charts display overbought conditions. When we see overbought conditions while the prevailing mode is bearish, we should anticipate resistance anyway. My Trade Consideration:- I am considering entering a long, but only if price falls back to the $2.60-$2.80 area. - This would be a small position because I expect further the bullish development to be slower this time.- In this trade, I would risk losing 50-60% for a potential 120% gain (stop around $1.30; target around $6.00). AVP Weekly Chart (click to enlarge)