LABS Regression Trend| Higher Low| Key ResistanceHello Traders!
Today’s chart update will be on LABS – Canadian MJ – which has been trading in a clear regression trend, close to testing upper resistance, is a break imminent?
Points to consider,
- Clear bear trend
- Support provided by 50 MA
- Regression trend resistance to break
- Stochastics in lower regions
- RSI respecting trend
- Volume below average
LABS bear trend has been putting in consecutive lower highs, with a first higher low coming to fruition, a trend change may be probable.
Support is currently being provided by the 50 MA, all averages will eventually need to hold LABS when testing key resistance. The Regression trend resistance is a staunched area that LABS must close above to register for a probable trend change.
Stochastics are in the lower regions, can stay trading here for an extended period of time, however lots of stored momentum to the upside. The RSI is respecting its trend line, currently neutral, not at extreme ends. LABS volume needs to stay above average for continued follow though when breaking levels.
Overall, in my opinion, a break and close above key structural resistance will confirm a trend change. LABS, does need to increase volume otherwise a rejection at currently trading level will become more probable.
What are your thoughts?
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And remember,
“Trading effectively is about assessing probabilities, not certainties.”
― Yvan Byeajee
