American Cannabis Company Inc (AMMJ)

[ospreyeye]

$AMMJ chart - 2 closes in a row above the middle Bollinger Band @ 0.43 - $Key level to turn into support - EMA 4 bullish crossed EMA 8 - large $Volume spike following a multi day run - Fast Sto in the above 50 bull zone - RSI @ 47.56 - keep an $EYE out for RSI above 50 - that would be bullish -

The one negative $EYE see is the candlestick pattern - $AMMJ had a Gap Up Open today, but closed near the same level as yesterday's close - this creates BEARISH MEETING LINE reversal pattern - like all patterns it must be confirmed - what $AMMJ bulls want to see are candles forming above the middle BB and EMA's 4 & 8 - that = Up Trend - nice start - just need to hold support - checkout the 3rd week of March - $AMMJ failed to turn the middle BB into support and pulled back - that is history the bulls do not want to repeat -

http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=2207

Definition

This pattern occurs during an uptrend. The first day’s white candlestick is followed by a black candlestick that opens sharply higher and closes at the same level as the prior session’s close. It is similar to the Dark Cloud Cover pattern. However, the amount the second day drops is different. The Dark Cloud Cover’s second day closes below the midpoint of the first day’s body, while the second day the Bearish Meeting Line closes the same as the first day. Consequently, the Dark Cloud Cover is a more significant top reversal. Nonetheless, the Bearish Meeting Line should also be respected.