It is no secret that this whole sector has been hit hard. This graph does have abit of promise.As we can see it is at a very steep downwards channel but I believe we are nearing an end. We can see that on the OBV, MACD histogram and William R to be bullishly diverging . on top of that the RSI is bullishly diverging on three points.
We can see that the price action found support on downwards sloping support line and it is currently approaching it again. On top of that we also have a nice base that was formed right below it since 2017 in case that fails
This week will be interesting to see how this price action forms.
I would still feel uncomfortable taking a long position since I have seen downward trends that has bullish divergence on 5 different points before if you take a look at OXY.
I'm bullish leaning on this as it looks like we have come to an end to this downwards channel, but it could easily just go sideways. but it will nonetheless be on my watchlist. It's possible that it might bounce and hit the 55EMA, but i would not count on it.
It seems to be respecting the 55 EMA on the 6 hour. So this will be an interesting week , especially if it breaks out to the upside and uses the 55EMA as support.
Perhaps there may be some people still hopeful that early 2020 is the time for cannabis and we might beable to take advantage of the little hype it generates, but i would probably sell it off before the earnings. Too many bad memories...
We can see that the price action found support on downwards sloping support line and it is currently approaching it again. On top of that we also have a nice base that was formed right below it since 2017 in case that fails
This week will be interesting to see how this price action forms.
I would still feel uncomfortable taking a long position since I have seen downward trends that has bullish divergence on 5 different points before if you take a look at OXY.
I'm bullish leaning on this as it looks like we have come to an end to this downwards channel, but it could easily just go sideways. but it will nonetheless be on my watchlist. It's possible that it might bounce and hit the 55EMA, but i would not count on it.
Perhaps there may be some people still hopeful that early 2020 is the time for cannabis and we might beable to take advantage of the little hype it generates, but i would probably sell it off before the earnings. Too many bad memories...