The underlying situation with Alexium isn't all that gloomy....

The underlying situation with Alexium isn't all that gloomy. Sure the stock has been going sideways since the gap down on March 9th. Consolidation phases like this are a natural part of the market processses and often in the consolidation process there will be changing of the guard over time. The traders, hot money or impatient investors will usually walk away as their tolerance or patience levels are hit.

Canny operators will see this as a buying opportunity, particularly so as most of the price action is concentrated around support in the in the high 40's through low 50's and a better risk/reward entry area. Selling into  ths sort of pattern doesn't make a lot of sense to me but maybe I will be the one ending up with egg on the face, time will tell.  

I have included a snapshot of Twiggs money Flow which shows that over the past few weeeks that money flow is close to neutral which is at odds with the chart visuals and that is what I mean by the underlying situation. I have used Twigg's instead of Chaikin Money Flow because although similar in principle the Twiggs version is better at handling gaps and bigger price moves which can lead to false reading on Chaikin. Right now Chaikin shows money flow as significantly positive which is a stretch really. The Twigggs data tends to support an argument that there is steady accumulative buying support under the covers.

Finally, I have added a couple of lines showing the ranging price action between 47 and 57.5 cents with much of action pivoting around 52 cents. I have highlighted what appears to a potentially bullish short term double bottom forming over the past week at 50 cents, worth watching

Daily intraday snapshot at 51.5 cents.