MMChartist Sez…..
First of all, do not take the following as recommendations or guidance. Please, consult your own professional financial advisor before taking any market decisions.
Last week, I mentioned that after 6 in-a-row positive days, CV was due for some profit taking as price approached an intermediate term resistance where da Bears had previously took control and held on 3 weeks before printing a low and starting a recovery. We’ve posted two down days now with a nice pin rejection low.
On Jan 19, the Hourly Chart rejection low back near what Steidlmeyer calls a top edge and that previous resistance become solid support. Tomorrow, we could get a little “spinner” Doji on the Daily as players deliberate the next directional move. Now….
Since I’m a CV Bull analyist, what I write next is for the Bulls. If you’re a Bear, please, give us some detailed price action projection levels lower. In other words, put your friendly trash talk where your pie-hole is…….
First, on the downside, there’s always the possibility of a liquidity grab. There was a Gap Open Jan 24 and some traders adhere to the belief that gaps always get filled. I don’t. But, we need to aware that there were likely some bears who had resting Sell Limits above the Jan 23 close that got their trading hair torn off ‘em like in the 40-year old virgin movie. ‘Tis possible that a large beasty bear that has sufficient shorting power to pin the gap price points then quickly reverse the position into a long. Personally, and just my opinion, I don’t see price moving below 4.50. I’ve moved my stops on partial to $4.00 and would adjust if I thought some kinda hell was gonna move price even lower.
Since earnings announcement is still weeks away, unless we get some fresh positive news, I am anticipating a week of consolidation but finishing the off higher than last week. Most the other more public big name pot companies and CWEB continue to have great run ups but look like traders are starting take some profit. Since CV doesn’t have the big board name recognition, I don’t see it moving higher until the CWEB, CRON and CGC move higher…UNLESS, CV comes out with some kick-arse news.
What I am anticipating after we get deeper into Feb and into early Mar, is for price to start making 2-3 punch-through penetration efforts at and breaking out beyond 5.65. From there, we have 6.50 resistance to deal with. Once we get to that level, I’ll post additional commentary.
