Analyst: Clean Air Technology Company ‘an Attractive Speculative Play’

Source: Clive Maund for Streetwise Reports   11/30/2020

Technical analyst Clive Maund charts the potential of ATI AirTest Technologies.

ATI AirTest Technologies Inc. (AAT:TSX.V; AATGF:OTC) is a company that specializes in making sensors that optimize the operating efficiency of commercial buildings, thus reducing costs, and the sensors also do things such as detect bacteria and viruses, thus improving safety. Things are going well for the company, which is approaching completion of a successful financing, due to close on Dec. 10.

The company appears to be similar in what it does to Kontrol Energy (KNR:CN), which exploded higher earlier this year, although of course there is no guarantee that it will follow suit. But given the potential of what it does there is a fairly good chance that it will at least enter a solid bull market growth phase. As the company says:

“Why Now? A Paradigm Shift

“After four years of focusing on the DCV marketplace, growing sales and a tremendous distribution network, AirTest is set to embark on an exciting new frontier.

“AirTest is nearing completion of a proprietary wireless version of their leading CO2 and CO sensors. These proprietary wireless sensors will eliminate 80% of the installation cost and achieve overall cost reductions by 50%.

“Given the non-invasive nature of wireless technology (no conduit to run), application to the retrofit (existing building) market provides AirTest with a tremendous opportunity for sales and business growth.

“When available, these wireless sensors will allow AirTest networks to rapidly expand the retrofit market. It will also facilitate sales of a wide range of additional AirTest products and services targeted for commercial buildings.”

On the 10-year chart we can see that it has been stuck in a giant, low, pan base for nine years now, from late 2011/early 2012 to the present, and it now appears to be climbing out of a lesser order pan base that formed from mid-2018. As we can see, the on-balance volume has been trending higher for several years, which is a positive sign, although the accumulation line, shown on the 1-year chart, has recently been weak. It is believed to be building up to breaking out from this giant base, which will be signaled by a clear break above the resistance approaching its upper boundary at about the $0.09 level.

The 1-year chart presents a very positive picture, apart from the weak accumulation line, which we will want to see improve soon. Otherwise we see that, having broken above the resistance at the $0.04 level, the price is trending quite strongly higher, with moving averages in bullish alignment, and the rising 50-day moving average coming into play to support its current attempt to break out above the resistance approaching the upper boundary of the giant pan base shown on the long-term, 10-year chart.

ATI AirTest Technologies is therefore viewed as an attractive speculative play here, especially on any minor dips, although there may not be any. The stock trades on light but improving volumes on the U.S. OTC market.

ATI AirTest Technologies website

ATI AirTest Technologies closed at CA$0.085/US$0.07 on 27th November 2020.

Originally posted on CliveMaund.com at 6.00 am EST on 30th November 20.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.