Welcome to my analysis.. I have done an analysis before for WEED. I am doing an update now for this week. . on to the good stuff:
Fundamentals:
Ok guys. I just read a couple of articles that was recently shown here in tradingview... they bear FUD-ing news. It's stating that Canadian cannabis companies are not a good investment. Let's see how the traders will view that and observe the market onto the next few days.
Technicals:
The candle's lower wick from July 13th grazes the 50 SMA. This is the first time it touches the 50 MA ever since its bull run from May 11th. The stock taking a breather or will it go down? Based on historicals, we can see that the 100 SMA acts as a major support. It has not touched the 200 SMA. With volume starting to pick up again, we can either see it bounce off the 50 SMA or go through and bounce off the 100 SMA. Regardless of what happens, this is a good opportunity to go short. All moving averages are on a bullish momentum, so if you were to short, pay very close attention to the hourly/30 mins charts. It's always faster to short than to long.
My personal trading experience:
For myself, I will wait for a confirmation reversal candle on the 50 SMA(34-35 dollars) or 100 SMA(30-32 dollars). That's when I will buy. The most optimal price point to buy is when it hits the 100 SMA and reverses back up. Personally, I do not see this melting down to the 200 SMA because of the legalization of Marijuana this coming October. This company is just too strong. Stay patient guys.
I am the Night Stalker. I stalk these charts.. day and night.
Fundamentals:
Ok guys. I just read a couple of articles that was recently shown here in tradingview... they bear FUD-ing news. It's stating that Canadian cannabis companies are not a good investment. Let's see how the traders will view that and observe the market onto the next few days.
Technicals:
The candle's lower wick from July 13th grazes the 50 SMA. This is the first time it touches the 50 MA ever since its bull run from May 11th. The stock taking a breather or will it go down? Based on historicals, we can see that the 100 SMA acts as a major support. It has not touched the 200 SMA. With volume starting to pick up again, we can either see it bounce off the 50 SMA or go through and bounce off the 100 SMA. Regardless of what happens, this is a good opportunity to go short. All moving averages are on a bullish momentum, so if you were to short, pay very close attention to the hourly/30 mins charts. It's always faster to short than to long.
My personal trading experience:
For myself, I will wait for a confirmation reversal candle on the 50 SMA(34-35 dollars) or 100 SMA(30-32 dollars). That's when I will buy. The most optimal price point to buy is when it hits the 100 SMA and reverses back up. Personally, I do not see this melting down to the 200 SMA because of the legalization of Marijuana this coming October. This company is just too strong. Stay patient guys.
I am the Night Stalker. I stalk these charts.. day and night.
Trade closed: target reached:
First target reached!! Landed perfectly and precisely to my first support! The candle that showed this is a doji/spinning top candle, which tells us that a reversal to the upside is getting close again. I believe that by the end of this week, the 200 moving average will hit my highlighted 2nd support, and that's where the price of the stock will meet it. The doji/spinning top candle today indicates that a reversal is close, which can be confirmed that it may be at the end of this week. Stay tuned guys!