APHA Bullish Divergence | Double Bottom?Hello traders,
Apologies, been under the weather the past few days, but now I’m back!
Today’s chart update will be on APHA – APHRIA Inc – Canadian MJ. Which has been in a brutal down trend, but there are signs of a possible reversal…
Points to consider,
- Trend Bearish
- Support at $3.90 Region (double bottom)
- Price testing resistance
- Stochastics trading in upper region
- RSI diverging from price
- EMA’s giving price resistance
- Volume declining
The trend has been putting in consecutive lower highs as it approaching its possible apex zone. The green highlighted zone is the current support level with a possible double bottom, signalling that buyers are strong. Resistance is poised by the trend line, which needs to break to negate the higher low market structure.
Stochastics are currently trading in the upper region, can trade in this region for an extended period of time, however lots of stored momentum to the downside. The RSI is currently diverging from price as it puts in higher low whilst the price has put in lower lows,
The EMA’s are currently giving price resistance, needs to cross bullish to support price in testing upper resistance levels. Volume is visibly declining; an influx of volume will confirm the direction of the break.
Overall, in my opinion, a break is imminent as we have a probable bullish divergence and a double bottom coming to fruition. APHA needs an influx of volume with follow through; this will avoid a possible false break.
What are your thoughts? Please leave a like and comment,
And remember,
“Never let a win go to your head, or a loss to your heart.” – Chuck D.
Volume Indicator
JSE:STXIND JSE Industrial Stocks Being distributedUsing the STXIND as a proxy for the industrial index to get an indication of volume it looks like the industrial stocks on the JSE are being distributed. We have seen an upthrust and sign of weakness (SOW) with increased volume on the declines and no interest in the increases. Price has held below the 200 SMA and Yearly Pivot Point. We are now looking for a break of the trading range to see the start of the markdown.
JSE:TBS Tiger Brands Next Step DownTiger Brands have is in the process of being marked down (See posts below) in a series of redistribution stepping stone. The latest redistribution trading range (TR) has seen a change of character in Phase D and I am now expecting the TR to be broken. Some consolidation at the breakout level can be expected but after that the next step down is expected.
JSE:RDF Redefine Markdown Continuing Following the markdown of Redefine Properties (See posts below), we have seen a smaller redistribution trading range (TR). There have been signs of weakness (SOW) with volume increasing on the highs pushing price lower. After an upthrust (UT) and Test, we are seeing price being marked down. This could just be the start of the further markdown.
JSE:PSG PSG Markdown in Phase D StartingIn a previous post (See link below) the theory that PSG is being distributed by the large investors was put forward. We are now seeking the start of the markdown in Phase E of the distribution and there is likely to be more downside to come.
JSE:DSY Discovery Markdown Starting After a good markup phase, Discovery has undergone distribution. After a breakout of the distribution trading range (TR) price has backed up (BU) to the TR and is now pushing lower which could be the start of the markdown phase. Volume has declined on the BU and divergence with the volume RSI indicates a continuation of the decline.
JSE:TBS Tiger Brands Markdown Set to StartTiger Brands has traded in a redistribution trading range (TR) and after breaking the TR it has attempted to break back into the TR but was unable to so. We have now seen signs of weakness (sow) which followed no demand on the increase. The previous attempt to rise with volume (effort) showed little response indicating that sellers are in control. After some consolidation at the smaller TR breakout level, we can see the markdown begin.
JSE:SAP Sappi High Volume (Effort) without ResponseAfter distribution, Sappi was being marked down. However, we are seeing very high volume that has been increasing and this week the highest volume was recorded. In spite of this high volume, the price has been trading in a very narrow range around the key R40 level. It seems that large interest buyers have stepped in and a break of the narrow trading range could result in a significant move.
JSE:SHP Shoprite Markdown StartingAfter breaking the distribution trading range (TR) we have seen a backup to the TR and now price is breaking lower. This looks like the start of the Phase E markdown. Increased volume on declines and decreased volume on attempts to rally indicates supply overcoming demand and large interests distributing the stock.
JSE:FFB Fortress B Effort Without ResponseThere has been an effort to push price higher without response. The effort is seen in negative divergence on the volume RSI and in the volume. I previously interpreted (See post below) this as buying pressure but the lack of response is pointing to supply being dominant. The markdown is set to begin.
Volume Climax| Key Levels| Need Bull Volume Follow through!Hello Traders!,
Welcome back!
Today’s chart update will be on ICX, bulls have got very critical levels to break to maintain a bullish bias…
Points to consider,
- Price testing resistance
- Rejection from major trend line
- RSI coming into resistance
- EMA’s holding price as support
- Volume climax
ICX is trying to maintain a bullish projection but there is not enough follow through from the bulls. Price harshly got rejected from trend line resistance, signalling strong sell pressure, a return to local support line is more probable.
The stochastics is currently in the lower regions, can stay here for an extended period of time, however lots of stored momentum to the upside. RSI is coming into its apex, meaning a break is imminent, the direction of the break will dictate the direction of ICX.
The EMA’s are currently holding price as support, this must stay true for the bullish bias as price tests critical levels. The recent volume climax signals that there are a lot of sellers at upper trend line resistance.
Overall, in my opinion, ICX is more probable to return back to the local trend line as bull volume has not followed through. This will cool of all indicators such as the RSI before ICX has another attempt at breaking current resistance.
What are your thoughts on ICX, can it maintain a bullish bias?
Please leave a like and comment
And remember,
“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street.” – Jesse Livermore
Dlt TINY ROCKETDLT/BTC
Using AZV indicator with Profile Analysis
Buy signal: (Bounce back ) ( Breakout )
Profile Sell Target : 610 SATS
AZV Sell signal : AZV - NO of bars = 26 & Multiplier = 2
AZV Signal type = Open Target
SL : Close 1 Hr Heikin candle below 536 SATS
AZV link :