RE:Possible OGI Breakout ModelI've observed the witches brew pattern, dog poop pattern and wild boat pattern. What does that tell me about my future?
HonestAbe wrote: I have observed that the charts for both WEED and OGI have exhibited a downtrending inverted head and shoulders pattern since early/mid-Feb. This pattern started earlier for OGI on Feb 6 and for WEED on Feb 14 (earnings news dump). In both cases the HnS neckline got bullishly broken to the upside on Mar 27 (CBC legislation news leak).
Afterwards OGI consolidated very briefly (like 5 trading days) in a cup pattern before breaking out of strong technical resistance at $2.65 on Apr 5 for a parabolic rise of +35% in the next 4 trading days.
WEED on the other hand has consolidated in this cup pattern for over double the time (so far 11 trading days as of today). Technical resistance is at $11.25.
So here is the potential bull scenario. I assume tomorrow is one more consolidation day that brings it closer to $11.25 and also a slightly higher low (maybe $10.50?). If it breaks out $11.25 then it is projected to go on a run equivalent in time to 80% of its consolidation period (or 10 trading days). Minimum target is $14 (based on prior peaks of $12.50 early Dec, $13.25 mid-Feb of about 2.5 months apart). But target could be as high as $15.75 based on 3 chart price squares (of $0.25 each) above the slope of a similar uptrend line that occurred during the Mar 22 to 28 run. Projected peak price occurs around Apr 27 (if counting 10 trading days after Apr 12) and a sell-off ensues.
Abort this bull scenario if price dips below $10 again on a daily close during this next week.