very volatile dumping spikes in AVXL intraday...
more that a few times this week, almost has to be expected,at the open ,and at the close, on Tuesday both the open and close,yesterday and today more 20 cent dumps around the 5.45/5.50 area. in a flash. at each resistance peak...5.45/5.55/5.65/... and crafting another "rising wedge" with pivot lows from 5.10/5.20/5.25/5.30/5.35 and now 5.40....not to be trusted any more than the last one a month ago.
next up the steps in the climb ... should sound wake up alarms for the short attack wolves at 5.75, and Friday to peak and then end the week with a slam down that settles for the week around 5.59.,and the weekend left uncertain which direction will dominate next week...is one picture I'm watching for. I don't like seeing the next step of resistance Fail at 5.75/5.77, I really want to see the bounce be strong enough to at least hit the 5.80. and the key moving averages. 5.80 has been a key balance point as has been 5.85 area. just that extra 10 cent step above the 5.75 will be enough to look like a more bullish rally wants to find higher targets toward 6 dollars, then above 6. This resistance step at 5.70/5.75 area would represent a chance for the MM's and short attackers to jump the gun and not allow 5.80 to get hit.
it can be one of those times in a rally, where the obvious target is ,lets say 6.00, so the MM's cap it at 5.97 and slam it down. they do the same thing in downwaves, when you have a target at 5 .00, and the pivot bottoms at 5.03,and nobody gets their 5.00 bids filled.like the latest plunge that hit 5.10 and bounced from there. Don't you think the MM's could have pushed it 10 more cents down if they wanted to. Maybe I'm overanalyzing. but these programmed trading computers do this kind of thing. IF the 50ma overhead is at 5.80, the wall street players will slam it down at 5.77.
That's the danger for tomorrow in my view. to peak and cap it there and slam it down to end the week. stuck around 5.57
We're getting a bounce this week, as a reaction to the downwave from 6.27 to 5.10....the typical bounce as shown on the chart picture has this middle zone around 5.60/5.70/5.80/5.90 area as the resistance target for a "finished" correction bounce.
IF it hits this area and starts the next downwave we could see a 1 dollar downwave from 5.70 to 4.70.
In contrast to that downwave....IF we are seeing a bullish upwave pattern developing, then this Bounce from 5.10 to ,lets say 5.80 has a normal retrace correction, target at the 5.40 area , where we held today, as a new base in this 5.30/5.40 area, that needs to hold, and generate the continued rally, and then the 1 dollar upwave runs from 5.40 to 6.40, something like this.
So which direction will the powers decide to move AVXL now. as it climbs back into this middle zone and starts waiting again.(5.40-5.80)
