Looking at the big picture
with this chart... what does the 31 dollar peak represent ?
For me,in hindsight, it was the best place to take some profit, as was the secondary bounce at 28, and while its hard to sell any AVXL shares, it would be the technically correct trade decision. I sold a little but not enough. Any big surge like that has to be sold for some profit. The collapse back down always happens.
Then, as it collapsed down, I started buying bits too soon. another mistake. It pays to be very patient and wait for greater collapse. Its hard to wait like that, and resist the impulse to call that 16.50 sliding area a "Bottom" . Ok, so then, if traders took the gamble and bought some at 16.50 area, and fortune came to rally price up to peak at 23/22 area, That was the best place to sell those trading shares and take some profit, and perfect chart watching would have you waiting and waiting and NOT buying any, all the way down to Now, at 10 dollars. Traders should technically be buying here at 10 dollars. why are they not?
I bought a little here. All this collapse from 30 to 16 and then from 23 to 10 is NOT bolstering my confidence in the strength of AVXL. It increases my caution about buying too soon.
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Price surged from 5 dollars to 31. and since that peak, collapsed down to 10,so far.
The break down below 16 was a very big development. 10 represents the Bottom step in that target zone (17 to 10).
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A breakdown below 10.... where are the targets?
Looking at the chart again... lets pretend. We can see the great bottom lets call it 2.20. From 2.20 lets say we got a 10 bagger to the 22 peak. Lets call that secondary peak at 22 the 'real' top. a great 10 bagger from the bottom. Isnt that great? Forget all about the surging premature spike to 31 and those secondary peaks at 28, forget even the ones at 25. Be happy with charting a great 10 bagger to a top at 22, and that becomes the chart picture to look at from here.
a bottom at 2.20 and a top at 22.00
Now plot the chart. where are the targets to watch for. a 50% haircut targets 12 area. previous bottoms are at 10 dollars. there was a first resistance on the way up to 31 hit the 11 dollar area. there is past peak resistance toips around 8.00-8.40 area. Thats a big target now,waiting. Below that, whats the % target drops from 22 dollars.... a 70% drop is a target around 6.60
8.80 is 60% drop.
From 32 to 16 was a 50% haircut. from 22 to 11 is a 50% haircut. from 18 to 9 is 50%. from 16 to 8.
This is so not fun to do anymore. But the upward rally is always fun to watch. Bottom fishing is not much fun,until you catch a nice one at the bottom.
The selling top now looks like 17 area. how ugly.20 would be a gift.
BUT,if we get great chart shattering news.... it would be happy times to 30 again.
without news, 17 is the peak target in my view. a nice double, from 8.40 to 16.80 as a good trade. during a no news cycle. I'm just thinking out loud. as I wait for the 3 Gorges dam and bitcoin to collapse.
Do you know what the Rods of God are?
