AVZ chart, page-3566

I hope I didn't make it sound like TA is witchcraft. My intention was to state that it takes years and years of real time observation to understand how to use TA. I use it all the time, just not in ways that you will read about in 99.9% of TA books. Bulkowski is the one I think is most important, and at over 1000 pages, packed with statistics, he spent many years on it.

Given my respect for Bulkowski, I still use some things slightly differently, but use his work as a guideline at best. I've been using TA for 3 decades and I'm still learning.
I came to the conclusion many years ago, that it is the simplest stuff that works best.

On this occasion with AVZ, we approached a very good support zone between 16-19.5c. Many people tended to just look at the 19.5c bottom, and when we burst through they panicked.

We reached a bottom (temporary at this stage), on capitulative volume, then bounced upward the following day on good volume (last Friday). This week until today, we had been retracing back towards the 16c bottom (around the high volume tops from August and September last year), but on low 'disinterested' volume. Today's rise on volume relatively higher than most of this week, tends to be a bullish sign.

My TA has us still in the support zone, as we didn't break back above it, nor go below it, but are showing very positive signs, a lack of follow through selling this week.

Given assays are 'anticipated' next week, and assuming they are as good as the first lot, I'm happier to be in than on the sidelines waiting for a break (it could be a gap). Standard TA states that you should wait for a break of the pattern before entering, I only do that if already 'in'.

Chartists/technicians are like economists, you can ask 6 about the one stock and get 7 opinions.