AVXL holds 2.90 support step again
zig zagging between 3.15 and 2.90 ,coiling now around 3 dollars. has to resolve in some direction at some point.
A Bullish pattern wants and needs to go upward in a rally. I would be concerned to see it fall back to retest 2.75/2.70. It would negate the previous rally from 2.70 to 3.25 . It would reopen the possible target zone down at 2.50-2.20 area by reopening the 3.00 step as a Resistance capping zone again. turning the pattern sentiment/momentum slightly downward looking.(in my view)
An upward pattern would want to continue support holding 2.90-3.00 area, what used to be 3.00 resistance capping,that becomes 3.00 support step, is what a developing upward rally pattern should do. and like it did today, by holding the support at 2.90 step, jumps thru the 3.00 step to reach 3.10/3.15 area, is bullish...but now needs to hold the 3 dollar step as support. Thats the idea. support at 3 dollars. tested,and holding. tested ,and holding. and not fall to 2.80/2.70 and then watch the 3.00 step become a resistance cap again. That would not be a bullish looking pattern.
So IF AVXL gets taken downward, to retest 2.75 area and then bounces to Fail again at 3.00 and that capping pattern redevelops, it reopens the downward potential for lower steps falling/bleeding down,to the lower targets. That was the possible downwave waiting a month or two ago, that Held strong at 2.70 and rallied to test 3.25/3.20.
So it seems to me, this 3 dollar step is critical now to the pattern in whichever direction it would move. a larger move of 50 cents, from 3.00 to 3.50 target zone or from 3.00 to 2.50 target zone.
That Monthly 50ma at 3.80 as a target is interesting. I like the 3.70 area as a target zone for a rally. resistance around 3.45-3.50 is there waiting to get capped. I would consider a downwave to test 2.50 as a possible buy target. and definitely at 2.25 as a buy target.
AVXL is spending alot of time zig zagging between 2.75 and 3.25 now. centered around that 3 dollar step in all the math patterns.
