Replies to post #5740 on 123Tom's TA study group

[123tom]

Brother bill,just read my recent posts...
this is what Ive been describing.
a battle zone between support to hold (3.80-3.90-4.00 area) versus resistance overhead to cap (4.00-4.10-4.20) area

its a key battle zone at 4 dollars/chart
and this battle is a critical juncture in the pattern. has to be resolved. has maybe 60/70 cent target for the winner. (down target 3.30 area) (up target 4.60 area) and that buyers will have to buy here at this 3.90 support zone if they want the rally momentum to continue.

If buyers decide that 3.90 has held and isn't going down,or 3.80, etc....then they will start buying. this sideways battle zone could play out for a week or two if the volatility doesn't take price up and down in bigger plunges. I think buying targets at 3.60/3.50 are more attractive. and 3.30 is my buy target,3.15 is my buy target for myself. but the current support level is here in this battle zone around 3.90.

The resistance overhead is showing today exactly what I described it should do. This price action is ALL technical gyration. in the battlezone.
Sellers are watching to see if the resistance at 4.10 will hold strong, and if it does they will start selling and shorting it, looking for a 70 cent target at 3.30 ,where the 200ma is waiting.
The bulls are waiting as well, to see if the 3.90 support will hold and the 4.10 resistance can be broken, and they might start buying at 4 dollars. This is the battle playing out now. and the 70 cent target for the bulls to gain is the 4.60 area.

My bias (which could be wrong) is that resistance will win this battlezone,and the selling will bleed down the way AVXL always does, and we will see steps hit at 3.80/3.70/3.60. IF that happens ,then you watch what kind of buying steps in at these support steps. and how high they rally the bounce.

Maybe it hits solid resistance again at 4 dollars and gets hammered down again. This is a long bus ride up and down. over weeks.

So I'm sitting back and just watching the battle. if bulls win, I have some trading shares ready to trim at the 4.50/4.60 area. If bears win the battle ,I'm ready to buy a little more at 3.40 and lower steps.

and in the middle zone (3.60-4.20) I just sit back and watch the battle play out.