...and thinking about the AVXL resistance overhead...
and what kind of 'climb' we might get to reach that zone,I was thinking that IF we see a single blast up surge to that resistance around the moving averages (5.80 area), the speed of such a move could generate a short attack almost automatically....but if the MM's don't want that to happen, they are choosing to cap and control the climb, a small step at a time... and if they do it that way, they could slowly bring AVXL up to test the danger zone more carefully,avoiding a volatile slam down...and maybe that way they are crafting the new base that includes this 5.30 zone as a double layer of support to go along with the 5.50 zone that just got broken.
I think its all in a state of construction right now, and by the looks of today, that strange plunge down to hit 5.20 in the early minutes, well, we got the technical "pullback" if you want to call it that....but it really looks more like wall street games to me.when it plunges like that. BUT the target at 5.20 bounced back up and the technical math adds up again... I think this pullback support zone around 5.20/5.35 is being constructed now. so we might be seeing a temporary 'bottom' like you said.
It doesn't change the resistance picture overhead, the same targets are there waiting, but the slow climb to get there is what the game looks like right now. One of these topping steps will probably start to show weakness, and the next short attack should begin somewhere in that danger zone (5.70-6.00).... so far, the technical pattern is being followed on track,from target to target. Right now, we are watching the resistance zone at 5.50 area (5.45-5.55)... and the "support" level at 5.20/5.35...also still in play for bounces.... the next level higher in this Resistance zone, these small 5 and 10 cent steps are easy to see on the chart, we might see capping at 5.65, then support at 5.45...so easy to see a caveman with cataracts can anticipate these steps... , then we see carefully controlled and capped climbing to test 5.70 and then I think it will start to get testy for the MM's to hold off a short attack...in my view, the beginning of shorts starting to salivate will begin around 5.70, foaming at the mouth around 5.75 and rabies with howling around 5.80. Then if the MM's keep it under control around 5.65/5.60...we could see more climbing into the 5.85 area and the selling attack might start there. it just takes watching these capping games, as a clue, are we going to see a big surging candle ,like we did in the old rally bounces, or by the looks of the last 3 trading days, small controlled capping steps up and down, they allowed a plunge to 5.20 this morning ,that wasn't a controlled bleed. but if we see controlled bleeding and capping,then that might tell us at least how they are approaching this sensitive bounce back into the Major Resistance...I'm not sure what it means,,if they intend to keep the price action controlled around 5.10-5.80, so as to avoid any further collapses, maybe ? just thinking out loud here. but there might be a clue in their "method" now. Are they wanting to avoid too much volatility right now? It wont stop me from selling my expensive trading shares when the time comes. I'll be fine to lighten up the trading shares around 5.80+ and then start buying again below 5.45.
I didn't have a stink bid at 5.20 to catch price this morning.
but I do have one now at 5.12 area. in case we get another plunge.
Chuck, do you have any sense of whether it is a clue like this, watching the MM's control the climb here? or is it just my magination.
