Tuesday, April 11, 2017 4:22:07 PM
a rally begins this week.
the chart was set up for the last 3 weeks to begin this rally. finally it begins last Friday.
surging into resistance, pulling back down to support steps,support that held as sellers tried to sell it down but resilient was the price to hold at the support steps,and the surge continued .to peak at 6.48/6.49 where finally the sellers got some force behind it and took it down to 6.18. 6.18 had set itself as support earlier in the day ... the bulls won this battle. the key math target steps got hit at 6.05/6.15/6.40 and 6.50 target area, and pulling back the steps at 6.30 and 6.20 became magnetized as support steps. a good day for the rally pattern developing. Traders who might have wanted to take profit at 6.50-6.45 weren't given much time at the top to sell.
The selling force did make a show of some strength at 6.49 peak selling it down 30 cents. Much of the battle line balance line seems to center around 6.18/6.20-6.25 area now.
fine detail can be examined there.
On the technical chart when support and resistance points get hit, and one that was resistance now wants to become a support line, the surge above 6.30 that peaked at 6.49, now the 6.30/6.25/6.20/6.15 steps want to try and become support lines. the price action was doing that today, and needs to continue that strength to maintain this level.
This surge did not yet reach the 6.64 peak, technically we're still in the battle zone of resistance ,even at 6.50/6.40 and 6.30, despite the strong rally. it needs to continue to rally or else hanging and drifting up here around 6.35/6.40 could become a capping resistance peak that sellers could try (and the MM's could try) and take down. even if its only back to 6.00-5.80 area. its a possibility, if AVXL doesn't continue higher. The rally pattern that was developing from the start at 4 dollars has targets at 7/8/and 9 dollars. this surge today is still in relatively early stages for a finished rally. to stop here at 6.50 is not a great achievement. its half way to completion. On the technical chart I'm looking at this 6.50-7.00 zone as a wave 3 topping zone, wave 4 would slide sideways from 6.00-6.50 and wave 5 would rally up to targets at 7.50-8.00-8.30-8.80-9.00
If the MM cappers want to cap it at the wave 3 zone then it might be 6.50-7.00 for now. to give institutions a chance to buy before they take it to 8 and 9 dollars. would be my guess.
Bargains bought last week at 5.55 are looking good now.
As the day ends,and the price sits at 6.30 ,its facing 6.30 as a resistance wall that could get hammered down tomorrow. the pattern right now to end the day looks bearish in regard to resistance shoulder at 6.30 could possible be a slam down point tomorrow to try and drop it back to 6 dollars. I would watch for that tomorrow. its the shape of the pattern , and the bounce back into the 6.30 resistance shoulder, that could trigger a drop tomorrow, some selling effort by the MM's here would not surprise me. The 6.49 peak did Not hold up well. the 6.18 support line is holding up so far. caution is needed here to watch the resistance line at 6.30. we will see very soon what kind of strength this rally has now to break thru the 6.30 and retest the 6.50 peak tomorrow, or else the force of selling that takes it down another drop to retest the 6 dollar zone. It will be interesting and maybe volatile tomorrow to see what happens next.
the chart was set up for the last 3 weeks to begin this rally. finally it begins last Friday.
surging into resistance, pulling back down to support steps,support that held as sellers tried to sell it down but resilient was the price to hold at the support steps,and the surge continued .to peak at 6.48/6.49 where finally the sellers got some force behind it and took it down to 6.18. 6.18 had set itself as support earlier in the day ... the bulls won this battle. the key math target steps got hit at 6.05/6.15/6.40 and 6.50 target area, and pulling back the steps at 6.30 and 6.20 became magnetized as support steps. a good day for the rally pattern developing. Traders who might have wanted to take profit at 6.50-6.45 weren't given much time at the top to sell.
The selling force did make a show of some strength at 6.49 peak selling it down 30 cents. Much of the battle line balance line seems to center around 6.18/6.20-6.25 area now.
fine detail can be examined there.
On the technical chart when support and resistance points get hit, and one that was resistance now wants to become a support line, the surge above 6.30 that peaked at 6.49, now the 6.30/6.25/6.20/6.15 steps want to try and become support lines. the price action was doing that today, and needs to continue that strength to maintain this level.
This surge did not yet reach the 6.64 peak, technically we're still in the battle zone of resistance ,even at 6.50/6.40 and 6.30, despite the strong rally. it needs to continue to rally or else hanging and drifting up here around 6.35/6.40 could become a capping resistance peak that sellers could try (and the MM's could try) and take down. even if its only back to 6.00-5.80 area. its a possibility, if AVXL doesn't continue higher. The rally pattern that was developing from the start at 4 dollars has targets at 7/8/and 9 dollars. this surge today is still in relatively early stages for a finished rally. to stop here at 6.50 is not a great achievement. its half way to completion. On the technical chart I'm looking at this 6.50-7.00 zone as a wave 3 topping zone, wave 4 would slide sideways from 6.00-6.50 and wave 5 would rally up to targets at 7.50-8.00-8.30-8.80-9.00
If the MM cappers want to cap it at the wave 3 zone then it might be 6.50-7.00 for now. to give institutions a chance to buy before they take it to 8 and 9 dollars. would be my guess.
Bargains bought last week at 5.55 are looking good now.
As the day ends,and the price sits at 6.30 ,its facing 6.30 as a resistance wall that could get hammered down tomorrow. the pattern right now to end the day looks bearish in regard to resistance shoulder at 6.30 could possible be a slam down point tomorrow to try and drop it back to 6 dollars. I would watch for that tomorrow. its the shape of the pattern , and the bounce back into the 6.30 resistance shoulder, that could trigger a drop tomorrow, some selling effort by the MM's here would not surprise me. The 6.49 peak did Not hold up well. the 6.18 support line is holding up so far. caution is needed here to watch the resistance line at 6.30. we will see very soon what kind of strength this rally has now to break thru the 6.30 and retest the 6.50 peak tomorrow, or else the force of selling that takes it down another drop to retest the 6 dollar zone. It will be interesting and maybe volatile tomorrow to see what happens next.
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