The Cannabis industry has had a great run, but overvalued pig CGC put an abrupt hold to the recent rally with a desasterous earnings report, dropped without warning on a market that expected them to deliver in line with just 3 months ago. Snakes in the grass! A sell off was imminent anyways, with all that FOMO buying in the 3 days prior...
That said, APHA was due for healthy consolidation anyway, building up power for a move higher.
$4.30 resistance was broken, and has been holding as a strong support zone in the past week when bears attempted to drag her lower. We need volume to pick up if we want APHA to break through the current zone and try for $5. Indicators tell me this may happen first after a pull back.
APHA's fundamentals certainly support the current valuation, and this third largest Canadian LP trades at a large discount when compared to peers ACB, CGC and CRON.
Where to now?
The Bolliger Bands' middle line is currently running alongside the 100MA daily, both approaching previous key resistance $3.89. We should expect strong support here, should $4.30 be depleted. A bounce from $3.89 may see a run up to $5, but if $3.89 doesn't hold, then the current rally may come to an end, and APHA will be looking for a weekly higher low. Regarling the latter, there is a Bullish Cypher pattern in play right now, that becomes invalid when $5.30 upward is broken. I think we have to be very careful. My plan is to buy either a bull break, or as close to $3.89 as possible, in anticipation of a move higher, but with a tight stop, not to get caught in a bull trap...
Levels on watch ;-)
That said, APHA was due for healthy consolidation anyway, building up power for a move higher.
$4.30 resistance was broken, and has been holding as a strong support zone in the past week when bears attempted to drag her lower. We need volume to pick up if we want APHA to break through the current zone and try for $5. Indicators tell me this may happen first after a pull back.
APHA's fundamentals certainly support the current valuation, and this third largest Canadian LP trades at a large discount when compared to peers ACB, CGC and CRON.
Where to now?
The Bolliger Bands' middle line is currently running alongside the 100MA daily, both approaching previous key resistance $3.89. We should expect strong support here, should $4.30 be depleted. A bounce from $3.89 may see a run up to $5, but if $3.89 doesn't hold, then the current rally may come to an end, and APHA will be looking for a weekly higher low. Regarling the latter, there is a Bullish Cypher pattern in play right now, that becomes invalid when $5.30 upward is broken. I think we have to be very careful. My plan is to buy either a bull break, or as close to $3.89 as possible, in anticipation of a move higher, but with a tight stop, not to get caught in a bull trap...
Levels on watch ;-)
Comment:
I just noticed that the XB distance is too long, so this pattern is void.
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