Its all good fuzzy.....here's the Joy of TA. Given the opinion of many that the markets are manipulated, and that is a view that I hold, it goes without saying that TA (like weather forecasting) is not an exact science.
With that being said I try and play with support levels....trying to determine at what point support and resistance come into play. Using candlesticks instead of a simple line you get to see how a stock traded during a single day....how high and low it went....and I am seeing support for RVX around the 12 or 13 dma. On our first run north of $2 when the PPS pulled back, it bounced off the 12 DMA twice.
As far as resistance goes we're seeing it now, and coincidentally (not conincidentally imo) we also pulled back after spiking to these levels last Sept and November.....TA afficianados will say that history counts, if a stock has gotten to a certain level repeatedly in the past, that it can reasonably be expected to provide a headwind against further + movment. If the PPS breaks resistance then that's bullish. After this current $2.30-$2.40 area of resistance next up comes that $3 area we hit in April 2015...it will be resonable to expect some selling there....those who paid $3, there will likely be some willing to sell...get us past that and I see blue skies overhead....
Watch volume, if volume tails off as resistance is hit.....to me that's a plus. The reason all trading houses, hede funds and the like employ TA is because they too watch charts closely....they will know resistance levels and if they're accumulating they're not just going to ignore it, they'll take advantage of it imo.
Lastly....TA isn't the B all and End all.....imo it should be married with fundamental research, especially with a stock like RVX.
We all know there are potential catalysts coming up....investor presentations the next two weeks, a 2nd licensing/partnership deal, a futility analysis, possible orphan indications, and ultimately of course the potential for a successful phase III trial.
Good luck
