Anavex Life Sciences Corp (AVXL)

[XenaLives]

Your analysis is faulty because it does not take volume into account. What makes $4.50 "key support" when a few days ago it was $4.30? The answer is volume.

4.50 is a key support point that bullish momentum should hold. Failure here and lower drops today would negate the rally momentum and turn the price action bearish again. not a crisis, but not a happy rally follow thru. Maybe next week will follow thru,if it doesnt hold here at 4.50 .or 4.45 and make a turn around , whatever is moving the price here, needs to hold and rally up again if they want to maintain bullish momentum. the time is now.

Resistance around the 4.60/4.63 shoulder zone is the danger area to watch. and support failing here at 4.45 would also look poor.and turn next week more uneasy. The strong bullish momentum for today would be(have been) to see 4.50 hold strong here and rally strong just like it did yesterday, to the next rally steps above 4.70 , and the weekly candle a solid green and pointing to a test of 5 dollars next week. The very least AVXL needs to do today, if it wants to maintain some bullish momentum to yesterdays rally, is it has to rally to 4.60 and close above that shoulder zone.that would be the least it should do. Otherwise its ending the week stuck in a stalemate, not much better than its been sliding along the 4.40 zone ,these last several days. and the rally to 4.70 yesterday will look like a false breakout.

Most of the volume yesterday was done in what you call a "shoulder zone". Big boys could only buy by entering that zone. Volume below that zone today was very weak.

Note the doji at $4.50. This stock is being carefully walked up and the walk up will continue until news breaks.