$CGC near strong seller orderblock
Updated
CGC has made a sharp increase recently and the only news published are speculations based on American elections scenarios.Regarding the technicals, there appears to be a strong sellers orderblock between 8.50 and 9.05 and a bearish divergence can be observed with price not breaking above resistance while volume and momentum is decreasing at 15m chart.
Recently price broke above 200 ema on the 4h chart. Could this be a possible retracement with a minor correciton before further uptrend or is this the end of the pump phase and possible dump to further downtrend?
Note
There's a buyer order block at 7.20-6.92 and another right under 6.39-6.22, with this area being overall a strong support for the last 3 months. Either there will be a bounce from here for uptrend continuation or if breakdown occurs with high momentum then further downtrend might be possible.Either way, the recent price increase is not justified by any substantial news apart from US elections speculation and possible hype of the upcoming quarterly report.
Note
The indicators I'm using for reference are:Continuation Signals from AlgoAlpha
Volumized Order Blocks from Flux Charts
RedK EVEREX from RedKTrader.
Note
Final update on the above from my side, it appears the trade has entered consolidation mode since it's near a strong buyer orderblock. At this point anything is possible and the direction of price in short term will require evaluation of conditions from scratch in a new analysis.
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