The marijuana stocks industry is currently in adjustment, but the drop in prices has hardly affected the industry’s enthusiasm because investors have not received enough attention to the industry’s hunger because they continue to enter the industry.
The catalyst that fuels the needs and desires of this industry is that marijuana will become legal Canada at the federal level in July, which will become a priority for the entire world. The retail investment community is very firmly convinced that this date will play a catalytic role. This is what we both agree, but whether this situation has even turned into a bullish or bearish catalyst is something we may not be able to see.
Last year, when the Canadian government outlined its legalization framework and made public the details, the department was sold off.
This incident proved to be an “buying rumors, selling news” event. This raises the question, “Is there any difference this time?” Maybe it may or may not, but either way, I will continue to take My clue comes from the signs generated on the company stock chart.
I brought it to MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF). I am concerned about MedReleaf stock, because this investment is currently in the making. I cannot be completely sure, but my suspicions are being angered by the price action currently being generated on the MEDFF stock price chart.
Chart provided by StockCharts.com
MEDFF’s stock price chart shows that since February 14th, a technical price pattern called descending triangle has been developing.
The descending triangle pattern occurs when the price behavior is characterized by a series of lower highs and a static low. Connecting these series of price points produces two convergence trend lines that define the price support and price resistance levels, respectively.
The combination of price support and price resistance is particularly strong because of the triangular model. This is why I said that these modes are my favorite modes without problems.
The power generated by the triangular pattern is the result of traders positioning themselves on both sides of support and resistance, and anticipating solutions to this model. The longer this model is developed, the stronger the subsequent reaction.
The technical price pattern of the MedReleaf stock chart will soon be resolved because the range between the support and resistance levels will soon be reached. If I had to speculate, I would say that the solution to this descending triangle was a few days, if not a few hours, I left.
If the resistance level is broken, it means that the MEDFF stock price may rise, and a break below the support level means that the MEDFF stock price may go down.
This pattern is why I now think Medrelaf stock is brewing something. The price action is always original and accurate, and I firmly believe that the next move of the MedReleaf stock will be determined according to the direction in which the down channel will be solved.