Long
Path of least Resistance is..........
So the path with the least resistance is........... The last few trading days look like the Killing fields of the Neapolitan war! So, what do I expect. First, the Bollinger bands are converging to a point, so a strong break in SP will happen on Monday, but this does not tell me which direction the break will go. Second, based on 14 day analysis, we are experiencing short term higher highs and higher lows (always a good sign in a bear market scenario) but this does not tell me if its going to break higher, but it helps. Third, RSI, CCI Stoch RSI etc, are still slightly bearish but are forming a bullish pattern. Ill be looking at a break above the 45 % RSI in the near future (Bullish trend is promising with ascending pattern forming from a low RSI = good sign). Fourth, Volume is neutral to slightly lower than norm. This will most certainly change when a more predominant trend forms. But this also tells me, people aren't willing to sell their shares at the current SP. Sector performance overal is down with a bearish longer term trend, but once again there is evidence of a bullish reversal happening in the overall market. This would likely coincide with the expected legalization of MJ and companies such as APhria will be scrambling to meet industry needs. This will likely include bullish news of hiring sprees, news broadcasts for legalization, shortages of MJ etc... Ultimately, without going on a tangent, the path with the least resistance is...........I expect a strong bullish reversal in the short term, followed by a stall period until late June, 2018, where it is likely going to surge in price. The sector as a whole, whether you believe it or not is still undervalued, I do believe the anticipated market potential as a whole will increase by as much as 5 times current SP. Although, i do expect a surge in SP in the near term, the longer term outlook looks even better. If you are looking to buy a piece of the MJ market, now would be a good time, and not an excellent time, to buy a piece of the pie. I do believe another dip is likely at some point in the next month but this will coincide with higher highs and higher lows. I do not hold shares in Aphria, but I will Monday Morning. Happy investing all!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.