This week will be really interesting (Chart Point of view)Just to sound cool I will say that all the values stated are in canadian $
- Aphria didn't suffer like it usually does when Canopy Growth (WEED) is red
- Thursday May 28th we attempted to cross our 200 Exponential moving average and got rejected. The good thing is we set a higher high compared to 6$ and didn't break 5.47 that is a higher low compared to 4.82. We survived by 0.04$, Low of the day for Friday May 29th is 5.51.
This can lead to 2 scenarios :
Scenario 1 (Apha becomes the leader of the sector chartwise)
We finally decouple from all the cannabis sector and act as our own while Weed continues to get crushed and is hangover from their earnings. That would mean we are trying to make a higher high and cross the 200 EMA.
This can happen naturally or be caused by analysts raising targets for Aphria and lowering targets even more on Weed
Scenario 2 (Traders enter the party and don't care about Weed bad results)
Traders fill the gap on Weed monday and create some sort of higher low even if technically the higher high and higher low pattern was broken because of the gap down open on Friday May 29th. Therefore the whole sectors continues the bullish action and Aphria tries to do what I said in the scenario 1
I feel like scenario 1 is more likely even thou Weed has always been the most volatile and favorite stock of traders in the mj space so scenario 2 is not impossible.
Hopefully there's no scenario 3 where we all get crushed.
Interesting week ahead nonetheless. We will know within the first 30 minutes monday or pre-market if analysts update their price targets.
I usually don't post that much but with the pandemic, not much to do except be anxious for the upcoming week of stock market action lol.
Cheers