6BV3On the backside of the short we can ape in for the bounce off the bottom, would not recommend futures as the open interest on the contracts will be low, options is how to play this. Safe side is sell the put (don't advise selling naked unless you can manage the trade at all hours) or a credit spread to hedge any risk. This will provide ample time to collect the premium through any volatile price actions. I will be buying the call (naked) this is a much riskier trade and the "WIN HERE" line is meant for me not sellers of the premium.
Disclaimer I took the trade out yesterday but still feel there is room to publish the idea. This is why I recommend selling the premium rather than buying the call.
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CRLBF merger with Origin House CompletedI'll be receiving my 0.71 Cresco Labs shares for every Origin House share I owned. I bought them at a discount, so I am very pleased that this merger is closed now.
What is ahead for Cresco? Completion saw a small sell off, which I think could be expected. Not actually sure. Perhaps it was just the broader market playing it down. I think there is a bull thesis for CRLBF which is supported by the indicators. We're looking at a bullish M continuation pattern, hoping for confirmation on Monday and the days to come. If this pattern confirms, we could see the $8 resistance tested.
OH Bullish Divergence|Local Resistance|EMA Cross| Higher LowHello Traders – Merry Christmas!
Today’s chart update will be on CANNAROYALTY CORP OH where a valid bullish divergence has come to fruition.
Will OH have enough momentum to break local resistance and put in a new higher low?
Points to consider,
- Trend bearish
- Local resistance at 4.950
- Local support provided by EMA’s
- Stochastics in upper regions
- RSI diverged, Respecting trend line
- Volume above average
OH is currently in control by the bears, consecutive lower highs have been in place, a clear trend change will require a daily higher low.
Resistance is found at $4.950, a key level for the bulls to break as this will put in a new higher low, negating the bearish trend structure. Support comes from the EMA’s as they cross bullish at resistance. This needs to maintain for a bull break of the key local resistance level.
The stochastics in currently in the upper region, it can stay here for an extended period of time, however lots of stored momentum to the downside. RSI has diverged from price, needs to maintain its trend line for a bullish bias.
Volume is above average, OH needs continued bull volume follow through if it is to break local resistance.
Overall, in my opinion, OH needs to break local resistance convincingly with follow through. This will change the overall market structure, putting in a new higher low. An entry will be valid on the bullish S/R flip re-test of the local resistance.
What are your thoughts?
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And remember,
A streak of winning trades can boost your ego and self-confidence to such an extent that you start believing that you’re invincible. If that is the case, try to take a break from trading to calm your emotions down.
OHROF (OTC) CANNAROYALTYPotential opportunity for upswing in OHROF from 786 Fib retracement and taking over black market share.