ACB had a big gap up on the release of their impending NYSE uplisting, however the bulls we're able to get much followthrough and spent most of the day consolidating sideways with choppy action, setting a new high of day only to break the low of day a couple hours later. The daily chart shows RSI breaking out bast its resistance trendline but the doubletop at 13.60 and 13.48 shows a significant band of resistance in this area. We also have historical resistance at 13.75 from back in January.
We have a lack of support on the hourly chart because of the gap up open, so when we lose the low of the day we lost the hourly higher low pattern in my opinion. I am looking for some further consolidation before the bulls will be able to continue on the march upwards. I'm personally looking towards 12.86 to fill the gap, and subsequent price action will help me determine if that's a position I'll hold or quickly take profit on.
Key range: 11.95 - 13.60
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.
@McGuireTO i was just about to message you and say i spotted a double top on the ticker ACBFF. That gave us further data to conclude a double top on the Canadian ticker ACB. If it looses 13 tmr i see it testing 12.86-12.94 area and if that doesn't hold it will flush like it did 2 weeks ago. Not something i was hoping for right before legalization :(
McGuireTO
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@androtrade, good call - ACBFF doubletopped right to the penny, I hadn't realized that. Regarding any further run into legalization, go back over my ideas over the past 2-3 weeks and you will see I've been very skeptical. I keep waint I'm waiting for the bulls to prove it to me, and pointed out how CGC/WEED was holding up just waiting for buyers to show up - and they still haven't shown up
trader20120
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@McGuireTO, do you see it flushing more? because we hit 12.70's and i think we closed the gap from friday run up
McGuireTO
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@androtrade, There is definitely potential for room to the downside in the face of such incredible weakness in the overall stock market. Will post tonight