WEED bulls proving nothing to me

WEED started the day Friday with a gap down open just above our key daily level, providing a great bottom-fishing opportunity to play in our daily equilibrium. The entire move was given back in the afternoon when news came out of Canopy withdrawing their 'Chronic By Dre' trademark request after forgetting to get permission from the rapper to use his name. The result is a very bearish candlestick on the daily chart , still within our daily equilibrium, and still very close to a bear break. Turning on after hours on the American ticker, you can see the price rejecting from EMAs and providing a bear flag setup if the low of the afternoon sell-off 48.55 breaks.

The past two weeks on the daily chart have been a chopfest and I've been sitting on my hands waiting for it to play out, so we can finally have some clarity for the short term. I'm not giving the bulls any benefit of the doubt here, they need to prove it to me. First step would be to hold our key level 62.02 and break Friday's high 66.19.

Key range for me is 52.81 - 72.00. Until one of these levels break, I don't expect much trading opportunity as the range is so narrow it's difficult to find a pattern to play off of. If we break bullish , I will be a buyer looking for a new all time high heading into Oct 17th, and if we break bearish , I'll be entering as a short looking for a 5-7% move to the downside.

If we break bearish I would zoom out to the weekly chart and anticipate forming a weekly equilibrium, with a new higher low above 52.81. After covering my short I would be looking to enter long, as a range of 52.81 - 72.00 is more than enough room to play within and not have to worry about choppy price action giving false signals.

Reading the psychology of the chart, the past four days have clearly seen traders taking profit as they run out of patience waiting for new buyers. Many people are anticipating a run into Oct 17th, but I'm becoming skeptical there are many people looking to buy in the next two weeks that haven't already bought in.

I'm remaining neutral on what I think will happen, but we are 1% away from a bear break on the daily and 14% away from a bull break. The weekly chart remains very healthy.
Nafta deal signed, strong bullish recovery tomorrow.
+1 Reply
McGuireTO isnarain
@isnarain, a NAFTA deal will give the overall market confidence so that correlation will favour the bulls, but NAFTA has absolutely nothing to do with the MJ sector. The simple fact is we've been waiting for buyers to show up for two weeks and they haven't. If they don't show up soon, the profit taking will continue.
McGuireTO McGuireTO
@isnarain but I'm certainly hopeful ;)
Dude you’re the man - how do I learn to read charts like this ? I’m part of tcg group now - any recommendations / things that really helped you give you that “ah hah I get it moment”you have it down!
+1 Reply
McGuireTO jayrob4134
@jayrob4134, you're in the right place. I learned everything I know from TCG. Watch all of the educational videos included in your membership (see members only section on the website) and take the Entries and Exits course, it's worth the extra money. BTW my username is Matt at TCG
jayrob4134 McGuireTO
@McGuireTO, I was just thinking about taking the course - going to do it for sure now ! Thanks
+1 Reply
dustin83 McGuireTO
@McGuireTO, what is TCG? I have been looking for a good online knowledge bank and TCG sounds interesting
McGuireTO dustin83
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