Anavex Life Sciences Corp (AVXL)

[123tom]

Jimmy, I sometimes look at the XBI and IBB to get a sense of the biotech sector, but really, I don't know how reliable it is to be looking for correlation to the AVXL chart.

They are not looking too correlated to me. I mainly focus on the AVXL price action.
When you look at XBI for example and start way back a few years ago, as far back as it goes, and see what the whole giant rally looked like that peaked at 90.... and then retraced to 40-something.... Its a whole complex study in itself. and just becomes a rabbit hole to get stuck in.

AVXL is so unique,isnt it? why would it be a good idea to look for sharp correlation to the biotech index. all I might do in looking at XBI or Rut2000, etc, is to see if the XBI chart is hitting resistance (which it now is) and whether we might see continued rally to retest the 90 top...(we might) and would that bullish sector rotating, contrived sentiment, be enough to influence AVXL.... I don't see it happening like that.

AVXL is unique. and highly manipulated in both up and down directions.

But in any case, I wouldn't be surprised to see a short term rally in XBI (biotech sector) for a set up to fleece the sheeple retail who jumps in AT this Topping zone...where smart money can take profit and bail, and we see XBI come plunging down to retest the middle zone around 63-67-72 (65 area)
When I see that Giant Pumped up bubble rally that peaked at 90, it makes me think the real peak should have stopped around the 67 shoulder,and the real topping zone is around 70-75 area. and 80 is excessive. 40 to 80 as a Range. 60 in the middle as a balance.

a double from the 53 pivot low targets 106 area. a double from 40 targets 80. XBI is entering a resistance zone now, and I expect a set up of smart money to fleece the retail sheeple jumping in way too late here. as they always do. watch how the wall street media makes a big hype of the "rotating sector-Buy biotech" meme to sucker in the sheeple for fleecing soon.
The resistance kill zone for XBI looks like (77-90 )in my view.
with sharper targets around 80/82/84