WEED on the daily timeframe left a bearish dark cloud candle and a possible bear flag pattern. Increasing bear volume is a concern for the bulls.
We are still within our larger daily pennant but that pattern will break bearish if we lose 57.60. The hidden bullish divergence on the daily chart will be less likely to play out with the loss of this level as well.
Key daily range: 57.60 - 66.23
Zooming into the 4hr we see a bit of a more hopeful picture with a tightening equilibrium. Bulls have seen enough of a bounce that we can anticipate them holding 57.60 support forming a higher low, and the extend of the pullback will determine the likelihood of breaking 64.63 resistance or forming a lower high relative to that level.
Be aware there is market correlation between the mj sector with the S&P500, and keep in mind that SPY lost the daily uptrend today. It's often said that high tides raise all boats; likewise, low tides can beach all ships.
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.
We are still within our larger daily pennant but that pattern will break bearish if we lose 57.60. The hidden bullish divergence on the daily chart will be less likely to play out with the loss of this level as well.
Key daily range: 57.60 - 66.23
Zooming into the 4hr we see a bit of a more hopeful picture with a tightening equilibrium. Bulls have seen enough of a bounce that we can anticipate them holding 57.60 support forming a higher low, and the extend of the pullback will determine the likelihood of breaking 64.63 resistance or forming a lower high relative to that level.
Be aware there is market correlation between the mj sector with the S&P500, and keep in mind that SPY lost the daily uptrend today. It's often said that high tides raise all boats; likewise, low tides can beach all ships.
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.