AVN

[David Randolph]

AVANIR Pharmaceuticals (AVN). The Group's principal activities consist of research, development, commercialization, licensing and sales of innovative drug products and antibody generation services.

Let's take a look at a long term chart for AVN:



The stock has been up and down, between 1 and $10 for the past 15 years. The stock is trending higher now and it seems to be starting to climb the mountain again.

For the short term there's an important barrier at $3:



We have all the caracteristics of a double bottom - but we still don't have confirmation. A close above $3 would confirm the bullish case and $3.9 would be the next target (it is the technical target of the double bottom).

Volume was huge yesterday and AVN rose 9% in a down market. Relative strenght is a signal demand is outpacing supply. We buy at the open and expect a close higher than $3.

Trading Plan:

1) Buy at the open
2) Sell with a loss if close<$2.46
3) Keep monitoring the stock to sell with a profit - if we get a close above $3 expect $3.9 to come rapidly.

David Randolph
www.3stocksonfire.org

[David Randolph]

My last review on AVN was:

«Losing 0,34% on AVN and already losing patience. You see, the stock closed above $3, which should have encouraged more bulls on the stock (and discouraged some bears), but that didn't happened so far. That's a bearish sign. My hope is that because yesterday candle's big tail, that today the stock may advance ... the plan is: close today above $3 and I'll keep it. If not, sell on close.»

It didn't closed above $3, so I admit the mistake and take a small loss:



AVN updated chart:



«Cut the losses, let the profits run» is as true today as it was 100 years ago.

David Randolph
www.3stocksonfire.org

[shawFund]

Hi, Dav:

  Please keep a close eye on AVN. It formed an ascending trendline and try to break out $3.70 strong resistance.

  Most likely, the first try will fail and bounce back and may succeed in the second try.

  Long term target: $10 as you have mentioned.

[shawFund]

I don't understand what LiveLife wants to send 48 posts with the same contents?

Want to distroy this site?

I have followed David's posts during the last month.

I have subscribed many paid services and free services before in the past few years and I can honestly say that this is so far the best one I have ever seen.

Mad Money is just a gabage. Jam Cramer appears on TV everyday making big money.
I consider it an entertainment program not an investment adviser program.

He also provides paid service for customer's to follow his buy-sell in his hedge fund.

But what is the performance of his hedge fund? I only hear the bad stories from his customers.

Don't be discoraged David by such posts like the ones from LiveLife.

Life will be going on and I like David's service.