Anavex Life Sciences Corp (AVXL)

[123tom]

Price action today


continues the track pattern I described in recent days. This appears to be a zig zag zone from 18.50 to 19.50 and today did exactly that.like recent days. This pattern is what Elliott wave calls a 'Wave 4' and technically it would suggest that it will develop into the next downwave (Wave 5) one more step to a finishing bottom. Maybe it would retest the 17.50 or fall to a lower target. Of course its possible that it wont create a Wave 5 down, but thats the basic pattern to watch for.
This zig zag pattern typically has3 moves ABC or 5 moves ABCDE,up and down like this. and begins the wave 5 down from the C or the E.we just finished the C today, so the current move downward needs close watching from here.
If we can gain any clues by following Elliott wave patterns, then this pattern is not hard to see and to distinguish between this non bullish zig zag versus a strong Wave 3 surge into a larger rally which is bullish. That wave 3 bigger rally that would be starting from the 18.50 support,is stalling at 19.50 resistance so far. So the battle is happening in this zone,as I described in recent days, and remains still unresolved ..
Its not a crisis if this wave 4 turns down into the wave 5 and targets the 17.50 or lower bottoms, it might just mean that the Larger picture will need to finish making the bottom,in a longer time frame swing pattern. Its ok to wait for the pattern to finish developing the bottom.
The first time the 17.40 LOW held and made a 3 dollar rally to the 20.50/21 resistance was a decent rally wave.to start with. But building upon that wave,to become a bullish rally pattern, needs to be holding support at the 18.50 area and then rally again to higher targets around 22/23/24 area. The fact that it is being stifled at 19.50 becomes a bearish clue in my view. and this zig zag pattern ,as a Wave 4, is waiting for the wave 5 down to develop. 18.50 still needs to hold support to maintain a neutral bias,with any bullish potential,and bullish momentum must break thru the 19.50 capping resistance. The zig zag battle is still ongoing unresolved. at the moment.

AVXL Chart