Anavex Life Sciences Corp (AVXL)

[123tom]

The short time frame picture


As the price meets the resistance area and sells down, it has been holding so far at the key support zone I described in recent days, (5.80-5.90-6.00 area). I would continue watching that support area to hold like it has, and watch for the bounce to grind higher, but this toppy zone is a place of caution for me, a target zone to be careful about. It was a nice rally wave from 5.12 so far ,now reaching the 6.50 target. Maybe now starting to look at 7 dollars, but unless this is news generated, the higher it climbs, the more risky the trading pattern becomes. The bottom zone at 5 dollars looks ok, and the current support at 5.90 is holding ok, so I'm letting my trade shares follow the climb, but for the trade, where would profit taking become risky to sit on... The resistance zone around 6.25 looks like it isnt especially firm now, the grinding higher is stretching it out. But if the trade pattern of buying and selling has equal force, we could easily see the next 1 dollar trade go from 6.50 down to 5.50
All I can say for this pattern, is that it was a good decision when people bought the 5.12 Low. I made the mistake of waiting for it to hit 5 dollars. and missed out on buying more trading shares.

Watching the support at 6 dollar area