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Re: oldmystic post# 11126

Sunday, 12/10/2023 6:47:14 PM

Sunday, December 10, 2023 6:47:14 PM

Post# of 11385
For now I favor the 5.75 gap as a likely runaway/breakaway gap. Why? Because it fits the definition.
Toward beginning of an up move reversal. Closed at/near the high of the day.

"Because breakaway gaps tend to occur at the beginning of a move and tend to not get filled, they are the only type of gap that should be purchased. Investors should note that the best breakaway gaps tend to close near the high of the daily range. A poor close can hint that the gap may be prone to failure."

There is a lot of support that would have to breakdown to get back to 5.75. The April 7.44 swing low candle coupled with the 7.54 recent high and the upward trending 13ema at 7.44 need to be confirmed support failures. If they all fail and the 7.10 50 period fails only then will I begin to evaluate 5.75 gap potentially becoming filled. Since that gap up there has been an established trend of price above the 13ema. For me, that would be the first major need for a sustained downward move.
For price to return to 5.75 IMO requires both a significant drop in XBI with an absence of AVXL news and a growing degradation of confidence in approvals.

Just the way this one geriatric reads the tea leaves for his opinion. 😎

https://stockcharts.com/h-sc/ui?s=AVXL&p=D&yr=0&mn=11&dy=0&id=p15084378404

PS: my hope for the future is for the 50period to continue turning up and cross the 100 and then 200 because of PR's and positive AVXL developments. But that is also putting my cart before the horse.

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