Watching how much followthrough the current bounce can get in order to determine the probability of forming a higher low on the next consolidation vs the probability of rolling over into lower lows and deeper weekly consolidation.
Sector has bounced from the supports we were watching last week. The question now is can the bulls followthrough with this bounce to give them favour for weekly continuation or will the bears step back in to force a daily downtrend?
Some key support tests across the sector first thing tomorrow, aside from VFF, which looks to test resistance first thing. Take a look at the weekly charts, these setups are very different from one another.
The disappointment from yesterday has followed through today. Most names are looking at support tests first thing tomorrow; VFF on the otherhand is looking at a resistance test. Take a look at the weekly charts on these names, some are much stronger than others..
It's good to be back!
Most major names are in strong hourly uptrends but in different positions on their daily charts. CGC is weaker, VFF CRON and APHA are stronger, ACB and TLRY are somewhere in between. Bulls not in position are patiently waiting for hourly pullbacks to go long and bears not in position are waiting patiently for clear topfish levels -...
CGC appears to be in a Wyckoff pattern after a significant downtrend for all of 2019. In this video I examine if we're looking at a pattern of accumulation (bull thesis) or distribution (bear thesis).
Factors supporting Accumulation:
- Volume on the Signs of Strength days
Factors supporting Distribution:
- Chaikin Money Flow
- The presence of a...
Lack of any bull moves on the SAFE Act passing Congress means it was already priced in, and bulls who were holding looking for a move, who exited their positions when that move didn't come, was a contributing factor in significant red week we saw, in my opinion.
The other factor to be aware of is all the bearish news articles around the vaping illnesses we've been...
Bearish week in the sector is having some longer term charts get crushed, but others are much more neutral such as HEXO which has been trading sideways for the past two months. Looking at some potential price targets (NOT buy targets) using the longer term charts if we confirm daily & weekly bear flags this coming week.
At this point I believe odds favour another...
Watching PYX for a key resistance test, likely to come this week. This is one of my top watches right now. If we lose the daily MBB the bullflag setup is dead and we will be looking back down to a higher low above our $12-ish area of support
Major Canadian MJ names are largely in similar patterns with notable ACB post-earning weakness. Many of the smaller names are in weaker setups. HEXO is one to watch for a few weeks out from now.
CGC bulls have their first shot at changing the daily trend for the first time in many months, and the entire sector will be watching to see if the sector leader can...
EROS is my top watch on Monday, looking to confirm a daily bull flag into a potential weekly breakout. Remember to pay yourself if taking this trade. I'll follow up on this idea later in the week to see how it plays out
Watching AMAG consolidation as very healthy on the daily chart. Clear 15min downtrend right now and potential hourly eq. I'd like to see this break on big volume and I'd be looking for the last weekly resistance to break and the gap above to fill also.
Watching for bulls to lose hourly uptrend to indicate daily consolidation underway, and watching name sin hourly downtrends to break resistance levels to tells us the daily higher lows are in. The Canadian names all haver largely the same setup across the sector, while the US names are more of a mixed bag of different setups.
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