Good Afternoon Traders,
Due to the recent earnings report released by CRLBF and possible formation of a new Support, the recent upward trend may continue to a new Resistance. The Cannabis Industry has been releasing positive Quarterly Reports during the ongoing COVID crisis. This may prove Cannabis to be a more inelastic good than previously thought.
On the technical side, a new Support may have formed around the $4.26 range. It does not appear the trend will continue without a short-term pull-back. Bearish Divergence has formed on the 1D MACD/Price Chart. The 1D RSI is also in Overbought territory. This may be signaling a short-term pull-back/consolidation. First entry consideration would be taken if the RSI forms a lower-low and Hidden Bullish Divergence forms on the RSI/Price Chart. If RSI does not drop low enough to form a lower-low, second entry consideration would be taken when price closes above the current Resistance around $5.20
Thanks for reading. If you liked my analysis, please give me a follow.
*The above is not investment advice but simply my analysis of the current market conditions*
Due to the recent earnings report released by CRLBF and possible formation of a new Support, the recent upward trend may continue to a new Resistance. The Cannabis Industry has been releasing positive Quarterly Reports during the ongoing COVID crisis. This may prove Cannabis to be a more inelastic good than previously thought.
On the technical side, a new Support may have formed around the $4.26 range. It does not appear the trend will continue without a short-term pull-back. Bearish Divergence has formed on the 1D MACD/Price Chart. The 1D RSI is also in Overbought territory. This may be signaling a short-term pull-back/consolidation. First entry consideration would be taken if the RSI forms a lower-low and Hidden Bullish Divergence forms on the RSI/Price Chart. If RSI does not drop low enough to form a lower-low, second entry consideration would be taken when price closes above the current Resistance around $5.20
Thanks for reading. If you liked my analysis, please give me a follow.
*The above is not investment advice but simply my analysis of the current market conditions*