Well, cannabis stocks went through very rough couple years. They all were in accumulation mode for good part of 2019 and entire 2020. Accumulation is done and ready for take-off. Here is why:
- Few month ago we made new Higher High with possible Higher Low as of now.
- The reasoning behind Higher Low is a consolidation in the area of Fib levels 0.705 and 0.618.
- Price breaking out (or at least trying) from the classic BULLISH Pennant.
- Price extracted liquidity from fairly matured Order Block originated in 2016 Price Action with super High Volume.
- The volume even higher than previous bullish runs of 2017-2018.
- Other canna stocks are breaking out as well for confirmation. Looks like entire industry is ready for the move.
Invalidation:
- Price action breaks below HTF Liquidity Support and deeps lower.
- New Lower Low established.
Note:
- There is one area of concern (gap in price) right around Volume Area Low and HTF support. Price may deep into that area for quick grab to close that gap, but this area can be treated as part of bullish "Reversal Island" setup and may be avoided altogether.
As always this is not financial advise.
- Few month ago we made new Higher High with possible Higher Low as of now.
- The reasoning behind Higher Low is a consolidation in the area of Fib levels 0.705 and 0.618.
- Price breaking out (or at least trying) from the classic BULLISH Pennant.
- Price extracted liquidity from fairly matured Order Block originated in 2016 Price Action with super High Volume.
- The volume even higher than previous bullish runs of 2017-2018.
- Other canna stocks are breaking out as well for confirmation. Looks like entire industry is ready for the move.
Invalidation:
- Price action breaks below HTF Liquidity Support and deeps lower.
- New Lower Low established.
Note:
- There is one area of concern (gap in price) right around Volume Area Low and HTF support. Price may deep into that area for quick grab to close that gap, but this area can be treated as part of bullish "Reversal Island" setup and may be avoided altogether.
As always this is not financial advise.