Good evening fellow traders,
Pot legalization was finally confirmed by Trudea on October 17, 2018. Keep that in the back of your mind under the fundamentals tab. This post is about technicals.
With that said, here is my analysis of the WEED company. MACD and the Force index dictates a bearish momentum WEED(thats 2 points checked for the bears). The moving averages are still bullish but given on their 50-100-200, it might take a few more days before they turn to the down side as well (for now, 1 point for the bulls). As for the top down analysis, we can see that the candle has failed to make a higher high and a higher low from the 3 previous highs peaks (1 points for the bears). With that said, I see the price falling down to either of my lined up support levels. The first support at 34.53 were proven to be a strong resistance before by 3 peaks before we broke it to our new all time high.
The second support is between 30.26 and 31.52. These levels were strong support were shown from previous candles.
My 2 cents: I will wait for the price to hit my certain support levels and have my MACD/EFI and confirmation candles of reversal to the upside dictate as to whether I were to enter a long position or not. It's still too risky to hit a short position because of the volatility. It's always safer to bet on the long than the short because of the upcoming legalization at the end of Q3.
Thanks for reading my post. This is Balanar, the Night Stalker. I stalk these charts... day and night!
Pot legalization was finally confirmed by Trudea on October 17, 2018. Keep that in the back of your mind under the fundamentals tab. This post is about technicals.
With that said, here is my analysis of the WEED company. MACD and the Force index dictates a bearish momentum WEED(thats 2 points checked for the bears). The moving averages are still bullish but given on their 50-100-200, it might take a few more days before they turn to the down side as well (for now, 1 point for the bulls). As for the top down analysis, we can see that the candle has failed to make a higher high and a higher low from the 3 previous highs peaks (1 points for the bears). With that said, I see the price falling down to either of my lined up support levels. The first support at 34.53 were proven to be a strong resistance before by 3 peaks before we broke it to our new all time high.
The second support is between 30.26 and 31.52. These levels were strong support were shown from previous candles.
My 2 cents: I will wait for the price to hit my certain support levels and have my MACD/EFI and confirmation candles of reversal to the upside dictate as to whether I were to enter a long position or not. It's still too risky to hit a short position because of the volatility. It's always safer to bet on the long than the short because of the upcoming legalization at the end of Q3.
Thanks for reading my post. This is Balanar, the Night Stalker. I stalk these charts... day and night!