I do not agree with the candlestick identifications from American Bulls for either one. (Daily)
Yes yesterday was a dragonfly doji however today was an inverted hammer for AVXL.
These two candlesticks together denote potential for reversal not yet full speed ahead.
I do agree it needs more confirmation.
So far what I see is there was tentative buy on a 30minute chart at 7.08-7.10 for those who who like to scale into a stock with a potential bottom and they are planning on adding if it continues to drop and retest the low or have a tight mental stop they can sell at. I always use mental stops so the MM's can't catch me in a break of stripping stop prices initiated by their trading bot.
Looking at a Daily
SAVA has a hammer candle yesterday and an inverted hammer today. Again this is not a confirmed buy signal by itself.
What SAVA has going for it is the higher low pattern developing which AVXL does not yet.
Both stocks have some decent indicator support, however the chart position of price in SAVA is much stronger than AVXL.
IMO, SAVA has potential upside to 50 period which is descending. If it can confirm above the brown 50 then the green 100 is in play. Lots of resistance as noted in the longest VbP bar.
AVXL is dealing with a strongly down angled lower bb and negatively stacked 4,8,13ema's before even testing the down angled mid lines. Today it just barely clawed out a close inside that lower bb.
Conclusion IMO, both need more building with SAVA in the stronger position of the two.
My view is though they have potential the feel they give is overly optimistic. If they are that optimistic what are their target prices before taking profits.
Not a financial consultant or anyone authorized to give trading advice. Just my interpretation of the tea leaves of a TA chart.
