yes, The 50ma AVXL....
I'm trying to figure out which pattern is stronger now....either the 50ma as support holding, or the 4.25 zone as a resistance that keeps the price down, like stuck in mud, a muddy zone (4.20-4.35 area) which is like a resistance shoulder now.... the chart structure, Chuck, has this zone,around the 50ma, its not a good rally bounce zone, to stay stuck at 4.30 area...the better rally bounce would be testing the higher steps, around 4.55/4.65/4.75 area, and this week, was a sideways slide down to test the 50ma as support. and stay stuck in it.
Earlier,days ago, after the 4.46 peak, we got a pullback to 4.08/4.12, that was a strong enough pullback to the Fib targets...but since then, it has been capped at 4.30/4.35 and now hanging around the 50ma. I believe that as long as it stays stuck below the 4.40 area, wallowing around 4.30/4.20, it runs the risk of Failing here and falling down again to retest 4 dollars and the targets around 4.05/4.00/3.90 area. Price looks like its been kept under pretty tight control this week. I think a decent rally would have generated a better climb this week, to retest the higher targets at 4.60 area. so I'm sensing weakness here at 4.30 area.
On the positive side of the structure, we didn't get any big plunges down to test 4 dollars yet. and the 50ma at 4.25 has acted ok enough as a support magnet, holding around here...but I don't trust it to keep holding. without another rally bounce next week, I don't think AVXL will just keep holding here at 4.30.... staying here at 4.30 would eventually generate selling pressure, or more bleeding down, and the stink bid target zone is 4.05/4.00/3.95/3.90, etc.
The Elliott wave pattern, would be a good set up for a big rally surge next week,from this 50ma as a launch pad...IF the powers intend to generate this big rally now, its a good set up. otherwise, if they are keeping it capped and not going anywhere, I believe they can easily take it down again to the 4 dollar zone.
in my view.
