N00b Chart analysis
Hope everyone is doing good!
Is this the start of the bounce we have all been looking for in the Canadian MJ sector?The 3 main names, WEED(CGC) APH and CRON trying to find a bottom after negative reaction to earnings or it's a fakeout?
Increase in bull volume is what we want to see to negate fakeouts and bear flags.
Let's dive into APHA
For Volume reason I will only talk about the Nasdaq Chart, USD prices.
If you look at the daily chart and see the candles from July 13th to today,
You can see that :
- July 13th we held at 4.40$ USD
- August 7th we held 4.38$ USD
- August 12th we held 4.40$ USD
- Today we held 4.39$ USD
This means we have a good base of support at 4.38$ USD and is a key support to hold
To be convinced that 4.38$ USD is the line in the sand, we need to do 2 things tomorrow to be convinced :
- Hold 4.38$ USD of course (ideally not even test it)
- Break 4.75$ USD resistance on increasing volume (meaning a 4.28% day)
The ideal scenario would be to at least hit 5.09$ USD before consolidating(may take more than tomorrow) and then start to consolidate to look for a Higher low compared to 4.38$ USD.
Yes it would mean a 11.60% bounce if we hit 5.09$ USD but the bigger the bounce as long as it happens on increasing volume to be significant, the better to give bulls space and convince shorts to exit or at least calm down.
Never follow the advice of someone on StockHouse, treat it as information and do your own research.
Good luck