123Tom's TA study group

[123tom]

Watching AVXL intraday today

dropped lower to open.

it could generate bleeding down if the overhead resistance gets capped at 3 dollars now. It has that kinda look to it. in my view.
capped at 3.10/3.05 area/3.00 now
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but if it holds ok at the 2.75-2.85 support area ,that zone looks ok as a 'wave 4' that can hold and rally up in the next strong bounce. The strong bounce would represent the Elliott wave 5.that has to break thru the 3.12 capping top. There is a difference in the technical wave math pattern between a peak at 3.10 area and the target zone around 3.60/3.70 area. This 3 dollar area is a Math Wave 3 finish zone (2.75-3.15) the wave 5 target is (3.50-3.70-4.00 area) I dont want to see the rally wave end at 3 dollars. truncated and slightly bearish....as in an Elliott ABC pattern versus a 5 wave bullish pattern.
The picture of the waves that reached 3.12 can look like 5 waves when you see it, but the Math target zone should be 3.65 area,not 3.12
3.15 represents a weak target achieved ,a truncated rally.
5 waves to 3.12 peak
and if it follows technical trading math, could mean.... that the pullback coming off that 3.12 peak might try to hit lower targets,down at 2.60-2.25 area. The full retrace for a rally wave that went from 1.25 to 3.15 has the 50% Fib target around 2.20. thats the lower target zone. (2.40-2.20-2.00)
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The 200ma at 2.60 is a big target for a retrace as well. But IF this rally pattern still has more room to run, it needs to hold at the higher support steps here (2.85-2.65 area)

Its like looking at these intraday steps with a close up lens. to see what kind of support strength holds well, here at 2.85/2.80/2.75 area. or whether the resistance at 2.95/3.00 shows greater strength by capping and selling/bleeding down.