In addition to potentially becoming the 4th largest producer in the cannabis industry (with an estimated capacity to produce 130,000 kilos annually), the Green Organic Dutchman Holdings (TGODF) recently got its 15-minutes of fame when its CEO, Brian Athaide, was in the spotlight in an interview with CNBC’s Cramer last week. It appears that the pot producer, differentiating itself as the “Whole Foods” of the cannabis industry (focusing on organic products and beverages aimed at “the soccer moms, the grandmas,” as Athaide explains, is one the uptrend, potentially challenging its all-time-highs as of June this year. Let’s take a look at its technical price action.
In a previous article (at Halifax America’s blog), we traced the clear downtrend that TGODF had been exhibiting over a three-month period. August 24 marked a breakout, albeit on low volume, that would eventually reverse the downtrend (1). Following a significant “thrust bar” at (2), TGODF continued to establish both a higher high as well as a higher low (3), easily breaking through previous resistance spots and with much higher trading volume as well as volatility.
The high on Sept 13 of 6.61 exceeded its June high of 6.55 but until it sold off with fairly decent volume. The Cramer sitdown the following day may have buoyed the stock a bit (4) which also kept price action from violating its previous swing low at (3). From a basic price action perspective, this response from the bulls was critical, as it kept the price dynamic within the basic “uptrending” model (higher highs and higher lows). At the time of writing, price is at 6.04.
At this point, TGODF’s price is at a critical “technical” juncture–maintaining its upward momentum would not only mean breaking above its previous swing high, it would also mean entering new territory at a record high (and of course, following through on fairly high volume). This technical “bias” would also require its price to remain well above its most recent support level of 4.90.
- Resistance: 6.61
- Support: 4.90
- Trend: Up
The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.