Avid Bioservices Inc (CDMO)

[senrex]

Created this monthly chart late last week and was going to post it Friday but I thought it would be interpreted as being a downer at best and dissing at worst.

http://tinyurl.com/nu5xs7v

Just a couple of thoughts:

(1)ADX is FAR too high (as is the +D Green line). I was afraid it would need a correction.

(2)The divergence between the RSI and the ULT was far less pronounced last Friday (thus the comment next to the blue arrows). The ULT is racing to the bottom and the RSI has not budged (and neither has the ADX and +D). I don't work with monthly charts very often so I'm not certain how to interpret it. Off the top of my head I'd say that the faster that the ULT gets to the extreme lower position on the chart the better. Maybe someone more conversant with monthly charts might chime in here.

(3) Since December '13 we've had higher monthly lows. Let's see if it continues in this general biotech sell-off. Chartist Carter Worth said late last week to take profits in biotechs.

(4) If that symmetrical triangle plays out, it's still waiting for a 3rd hit at both the upper and lower lines. That would be a lot more volatility than what we'd like.

As I said, with PPHM, I use charts mostly to brace myself for worst case scenarios (it's just a psych way to prepare myself beforehand for all the PPHM nonsense I've endured since 1999). This monthly chart, short of bankruptcy, is hopefully the worst case scenario.

Volgoat, swg_trader, any thoughts?

JMO.