Potential Buying Opportunity in WEED.TO
Price has fallen to a rising trendline and is consolidating after a false drop below a prior low.
IF (and only IF) it breaks higher out of the consolidation is this a potential long trade.
I like the consolidation because it allows for well-defined risk control, with a stop loss placed below the consolidation or recent low.
I also like that the Nov 20 low just barely eclipsed the Oct 30 low, and then quickly rebounded. In a long-term uptrend I like to that start of action in pullbacks, as it indicates the pullback may be near completion.
Still need to wait for a pop higher before I consider entering, though.
Disclosure: no position yet, but a potential setup.
IF (and only IF) it breaks higher out of the consolidation is this a potential long trade.
I like the consolidation because it allows for well-defined risk control, with a stop loss placed below the consolidation or recent low.
I also like that the Nov 20 low just barely eclipsed the Oct 30 low, and then quickly rebounded. In a long-term uptrend I like to that start of action in pullbacks, as it indicates the pullback may be near completion.
Still need to wait for a pop higher before I consider entering, though.
Disclosure: no position yet, but a potential setup.
Cory Mitchell, CMT
Stock and forex trading insights at tradethatswing.com/
Stock and forex trading insights at tradethatswing.com/
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