Anavex Life Sciences Corp (AVXL)

[BIOChecker4]

I think we’re seeing some momentum buying but nothing more. The below-average volume is telling me there isn’t a lot of investor enthusiasm or conviction. If we see buying coming in on consistently higher than-average volume, that will send a different signal.

We’ve seen momentum buying in AVXL many times over the years but it always fizzles out in the absence of market-moving news such as a big pharma partnership or regulatory approval. I could be wrong in my analysis but I just don’t see a lot of enthusiasm among investors at this stage. AVXL has been a classic “show me” stock for a long time mostly because of Missling’s credibility issues. Yes, there are people (or algos) who see the stock rising and buy in knowing nothing about the company but hoping to ride the stock up before bailing out for a quick profit. At some point the buying ends, then selling comes in, and the stock settles back. Maybe this time will be different, but despite Georgejjl’s cheerleading and urging people to buy now ahead of HUGE news, my gut tells me this is just another momentum wave that will fizzle. The inflection point, if it ever comes, isn’t here yet.