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Dixiebrands

Bellrock Brands on verge of potential breakout. There has been a noticeable shift in cannabis stock sentiment over the past 2-3 weeks and some of the top market cap charts that had been forming bottoming/basing patterns recently are now showing breakouts, or are on the verge of attempting a breakout. BellRock Brands is one of the lower market cap cannabis stocks that looks to be on the verge of a breakout based on two chart patterns as well as bullish technical indicators. A move above .18c with conviction, and on volume, would be bullish in the short-term and likely lead to a move near .30c before any significant selling materializes. No entry for me just yet, waiting to see the breakout above .18c in the chart first which is recommended for trend/momentum trading. Entries can be made here in the expectation of a breakout, but tight stop-loss orders are recommended in the event of a reversal. I'll likely share an update on Friday after markets close for the week, or if a significant change in price occurs.
OTC:DXBRFLong
by PrepForProfit
Dixie Brands Descending Triangle Pattern#DIXI.U - Dixie Brands closed Friday below a descending triangle support line(lower orange line), which up until Friday had been propping price up as traders had previously been holding above $0.135 which is where the lower triangle line is drawn. A descending triangle is a bearish chart pattern that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line because it suggests that downward momentum is building and a breakdown in price is possible. Descending triangles are a popular chart pattern among traders because they show that the demand for a stock is weakening. When price breaks below lower support, it is an indication that downside momentum is likely to continue. Dixie price is now below the lower triangle line which is a bearish indication, but when trend-trading 2-3 days below a support line is needed before it can be considered confirmation of loss of price support and continuation of the downtrend. While price closed below the lower triangle line on Friday, traders also created a long, lower price candle wick which indicates that as bearish traders attempted to push price lower, bulls stepped in and kept price near the upper end of the daily trading range. Usually when you see long wicks near the top of an uptrend or bottom of a downtrend, it indicates that a top or bottom in price is attempting to be made, respectively. The decline in Dixie price over the past few months can mainly be attributed to overall sector weakness as the entire cannabis sector has been on a decline since mid-2019, and this is a sector that mostly follows the top market cap cannabis stocks, namely Canopy Growth Corp. The recent stock market sell-off hasn't helped the sector either as traders have been reluctant to buy much of anything over Covid19 fears and its affect on global supply chains. If you're a long-term holder of Dixie, the name of the game is to add at these low levels and lower your cost average. If you're a trader, a long entry can be made here in anticipation of a global market reversal early this week due to the oversold nature of most markets right now. Short-term trader stop-losses should be placed just below Fridays wick, or just under the $0.10c level. A breach of that level would likely indicate further downside in price.
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by PrepForProfit
Dixie Trend Line TestDixie Brands is testing the upper line of a falling wedge pattern while moving upward within an uptrend channel. As a sign of strength, price needs to continue to hold above the falling wedge and eventually break above short-term resistance at $0.24 in order for price to see upward continuation and be considered bullish. A failure in price to move above resistance will likely lead to a re-test of support at $0.18; a move below $0.18 would indicate that price has lost upward momentum and is at risk of heading lower.
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by PrepForProfit