Hope everyone is doing good :)
Will only talk about the ticker that trades on the Nasdaq, higher volume gives a better picture.
On my last post I talked about the Canadian MJ that took a big hit due to negative reaction to earnings (CRON, APHA, WEED/CGC) and said that they need to put a line of the sand and get a significant bounce going on.
My criterias were ideally a 10% or I said to at least bounce at 5.09$ USD with increasing volume.
If you take the low of monday August 24th (4.39$ USD) and compare it to the high of friday August 28th (4.84$) you can see that it represents 10% and that the volume on friday increased significantly. Volume on friday was almost 3 times the average of volume we had between Monday and Thursday.
That's something to be happy about because if consolidation starts on Monday, we still have a 6% wiggle room to set a higher low compared to August 24th low 4.39 $ USD
The only thing I don't like is the candle shape, a shooting star which means profit taking like you can see on the daily time frame there's a big upper wick on the candle.
This is why we have to zoom in and take a look at the hourly Time Frame and see that anything above 4.52$ USD is a hourly higher low which is something bulls want to have.
The last hourly candle of the day was heading in the green direction so it would be nice if 4.67$ is the hourly higher low compared to 4.52$ USD if we see continuation on monday morning (can't see in the future)
Key Supports
4.52 $ USD to keep the hourly uptrend alive and signal that the bulls are looking for more than a 10% bounce.
If we can't set a hourly higher low compared to 4.52$ USD means daily consolidation started
and 4.39$ USD is the next key support
Key Resistances
If we keep the Hourly Uptrend alive like I explained earlier and manage to also make a hourly higher high compared to Friday high of the day 4.84$ USD the 2 next resistances are
4.92$ USD
4.97$ USD
I personally like using the 26 Exponential moving average on the daily timeframe as a guide, and I like that we closed above it.
Again, the key will be the same, increasing bull volume is what I want to see or at least same volume as friday on Monday if the bullish scenario happens.
If you are on the sidelines and wanted to enter, just be patient and enter once the stock consolidates on the Daily Timeframe and sets it's higher low compared to 4.39$ USD.
If you made it all the way down here (reading my post) but didn't understand too much,
I recommend you this video https://www.youtube.com/watch?v=rlZRtQkfK04
Good introduction to Technical Analysis and I'm not as good as him so I will end the post with
Never trust or take for granted information you read on a forum, always make your due diligence and make your decisions based on your knowledge.
This post is just for educational purposes, not a crystal ball.
Have a nice week-end, we may have a good chart growing ;)