The seller of growing supplies like hydroponic equipment exploded higher last month on the heels of a strong quarterly report. (Revenue +123 percent, same-store sales +49 percent.) It’s pulled back and consolidated since as some potentially patterns appear.
First is the around $13.24. It was the close on August 14, one day after its gap up. GRWG bounced there in late-August. It slightly undercut the level on September 4, but held. That resulted in a false breakdown, which was followed by a higher low on September 11.
Second is the narrow range in the last month. Width squeezed to just 24 percent yesterday, the tightest since late July.
Next is the 8-day ( ). Most big stocks in the market have been under their 8-day EMAs since early September, but GRWG has recently jumped back above the line – despite the broader market’s selloff intensifying.
Finally, the weekly chart shows an almost-perfect rounded basing pattern around $14.
GRGW is a tiny company serving a fast-growing niche. That also has the potential of reducing its correlation to the broader market.
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