originally published Monday, March 04, 2019

All Biotech & Medical Stocks

We took profits in Avivagen at the end of February because it had arrived at an important resistance level in a critically overbought state, and therefore looked set to react back or consolidate before further gains are possible. We resolved to buy it back later depending on what happened. We sold it at about 80 cents and today it dropped intraday to 67 cents, vindicating our decision to sell, but volume has been comparatively very light as it has reacted back these past 2 trading days, which is a positive sign, especially given the bullish strong volume on the preceding advance. This being so it looks unlikely that it will react back much further, and may not react back further at all. What is therefore thought likely to happen is that it forms a trading range here as shown on the latest 3-month chart below, perhaps for a few weeks, which will allow the overbought condition shown by the MACD indicator to ease, before it embarks on another upleg. Should this turn out to be the case then we are at a good entry point again here, because we are near to the bottom of the potential trading range. This is the reason that we went ahead and bought it back today when it was priced at 70 cents – not a huge discount from where we sold, but that 10 cent drop we saved is better off in our pockets than in the hands of Mr Market.

The email alert saying to buy it back was sent out today at about lunchtime, and read as follows…

“Avivagen Inc buyback alert

Avivagen has had 9 or 10% lopped off the price since we sold it at an overbought peak a couple of days ago, which we did because we don't like Mr Market walking off with our hard earned profits. However, the volume pattern was and is powerfully bullish - big volume on the advance, light volume on this decline, so it looks likely that it will turn up again shortly. It is suspected that it will rally soon from about here and then zigzag around forming another bull Flag or Pennant before taking off higher again. Therefore considered worth buying it back here, but don't pay more than 73 cents at this juncture. Chart for now will be posted on the site later.

Avivagen Inc, VIV.V trading at 70 cents at 10.33 am EST.”

Avivagen Inc website

Avivagen Inc, VIV.V, CHEXF on OTC, closed at C$0.71 (bought back at C$0.70), $0.603 on 4th March 19.

Posted at 8.45 pm EST on 4th March 19.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.