It was a quiet day today, and I’ll admit I’m a little disappointed that after breaking the $5 level yesterday, we didn’t see any real follow through. When a stock finally clears a level that’s been acting as resistance, I like to see momentum step in right away. Instead, today gave us an inside day, which tells me the market is pausing rather than pushing. While that can feel frustrating in the moment, it’s not necessarily a bad thing from a technical perspective.
I added some more shares over $5 yesterday, anticipating that breakout momentum might carry higher, and for now I’m comfortable with that decision. My plan is to hold this position for a longer-term move higher over the coming months, not just a one or two day trade. Sometimes these bigger moves need time to build, and consolidation after a breakout attempt can be part of that process.
Volume today was lighter than yesterday, which is exactly what you would expect on an inside day. The lack of volume confirms that neither buyers nor sellers were in full control, and that usually sets the stage for a larger move once direction is resolved. From a technical standpoint, another long entry would come on a break over the high of the mother candle, which sits at 5.15. That level is now clearly defined and worth watching closely.
What’s also interesting is that this wasn’t isolated to just one name. Many other cannabis stocks printed inside days as well, including TLRY, CGC, CRON, ACB, SNDL, VRNO, TCNNF, and CURLF. When an entire group starts to coil up like this, it often means volatility is coming. As a result, the daily charts across the sector look like they could be in breakout mode tomorrow, so now it’s just a matter of seeing which way the market decides to resolve this consolidation.
For more analysis and market insights, visit my homepage
No comments:
Post a Comment