Anavex Life Sciences Corp (AVXL)

[123tom]

Price action today

A test of support and resistance today. The resistance capped at the 19.50 and the support held at the key 18.50 step. so far so good. the bounce from that 18.50 was critical to watch for resistance at 19 to sell hard and create the momentum for a down move. You can see the picture on the 5 minute chart candles with the bollinger (20ma) and the channel lines that were there and ready to cap and sell it down BUT...the buying pushed it through the 19 to finish the day at the 19.30 area. Giving the slightly bullish bounce the win on points. but I think mostly a draw, a neutral day,still unresolved in this critical battle zone between 18.50 and 19.50. that needs to be resolved in the coming days. The rally target steps to me are looking at a retest of the peak zone 20.50-21 area. and IF we get that follow thru move, the support steps lift up to 19 area from 18.50. 19 looking to hold. 19.10 area. and a continued rally that develops some strength to target 22/23/24 area and then see what happens from there for a pullback.

The support step at 18.50 tested again today and held is the main story
for today. The resistance at 19.50 needs to be broken thru for the upward pattern to proceed.
The developing picture looks a little stronger to me at the moment in the upward looking direction,but this upward move should show us some momentum here,not be sluggish. not struggle to break through 19.50 it should have some determination to jump to 19.75 and continue on to retest the 20.50 peak area. It would be an Elliott subwave 3, which is supposed to have some strength .
On the bearish clue for price feeling, the sluggishness is a clue to see it become sluggish around 19.40 overhead, and act like it wants to stay capped at 19.50 and wants to retest 18.50 again, is bearish clue for resistance capping . Thats not what a bullish wave 3 wants to do, but it is what a bearish picture wants to do, to retest the support at 18.50 and break it down to retest the 17.50. and thats the current battlefield in the picture from 17.50 to 20.50.
There are bullish targets waiting around 22/23/24 and higher, and bearish targets waiting at 18/17/16 etc. and the central battle is happening now in this 18.50-19.50 area. Still unresolved.