Anavex Life Sciences Corp (AVXL)

[123tom]

Just another look at today's rally blast and plunge.




Good to see that it was news driven. But it sold off strongly just the same. so its a mixed result in price action today, in my view.
A step in the right direction, but it was 4 steps up and 2 steps down today. back into the middle zone, where there's still overhead resistance from 4.40-4.80 all the way to 5 dollars and the 200ma.
another good surge tomorrow would be great ,or next week, would be positive. there's still more rally distance that needs to be gained by this news . otherwise AVXL would stay stuck here around 4.20-4.60 and keep waiting for a continued rally that might not come... until the next news release.,in 4 to 6 weeks? that's a long time to sit around in this 4.50 resistance zone.
At least its good to see the bleeding down stop. But, would it start up again,if we don't see the rally continue.?

I remain a little cautious here,until I see good follow thru,tomorrow or next week. AVXL needs to test the 200ma at 5 dollars to show strength in this first move.
Let's see how the 'market' reacts to the news,over a period of days.

From another viewpoint, I suppose it could be ok, for AVXL price to just sit here around 4.40 and slide sideways for a month. it isn't automatic that if it doesn't go up it must go down. It could just slide sideways around 4.25, along the 50ma. its gone many weeks sliding sideways before. it could do that again now.
But its encouraging to have good news to really create a sense of support,a confidence that maybe now,price might stay above 4 dollars.

Until today's news and price surge, the chart was looking downward and targets below 4 were ominous. That downwave was stopped today.