Quite the fight going on today in the MJ sector.
As expected we started the day bearish which was hinted premarket and injected with bearish news on the European growth outlook. Bulls however vigourously defended the low of the pullback and bought the gap down on serious volume. Bears did nog get much follow through on the pushback.
Most likely scenario is to consolidate on the hourly now to clearly establish the new higher low as with volatility of the past few days levels are not clear. If bulls manage to break high of the consolidation that will result in another leg up which will show how strong the bulls currently are. I expect a lower high to form first just below the last daily high. With a strong close, friday will be an interesting day and nervousness will be pushed to the shorts in this stock.
As expected we started the day bearish which was hinted premarket and injected with bearish news on the European growth outlook. Bulls however vigourously defended the low of the pullback and bought the gap down on serious volume. Bears did nog get much follow through on the pushback.
Most likely scenario is to consolidate on the hourly now to clearly establish the new higher low as with volatility of the past few days levels are not clear. If bulls manage to break high of the consolidation that will result in another leg up which will show how strong the bulls currently are. I expect a lower high to form first just below the last daily high. With a strong close, friday will be an interesting day and nervousness will be pushed to the shorts in this stock.