Local Top| ABC Correction? Oversold Bounce?Hello Traders
Today’s chart update will be on WEED – Canopy Growth Corporation – is the local top in and are we in an ABC correction? We are more probable to be in for an oversold bounce due to the over extension of indicators.
Points to consider
- Bear trend established on 240 time frame
- Local resistance at $38 region
- Local support at $25.50 region
- Stochastic in lower region
- RSI oversold
- Volume Declining rapidly
WEED is more probable to be in an AB correction after an impulse wave 5 being completed. The trend is bearish as it has failed to make a higher high, negating to overall market structure. Local resistance at $38.00 was breached and retested before a continuation down further to the now local support. This level needs to hold for a potential oversold bounce to come to fruition.
The Stochastic is in severely low regions, it can stay in this area for an extended period of time until we see a clear projection upwards. The RSI also is in severely low regions, an oversold bounce is more probable if price holds local support.
Volume overall is quite low, we need an impulse of volume to confirm an bounce and or break from current region. The EMA’s is giving price resistance into support; we need to see a bull cross for a confirmation of a bounce…
IMO, WEED is completing its ABC correction, a bounce and or a break from this local support will tell us where it’s more probable to head in the near future…
What are your thoughts in this Pot Stock?
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And remember,
“The market is a device for transferring money from the impatient to the patient.”- Warren Buffet