In stark contrast to GW Pharmaceuticals (GWPH), Emerald Health continues its slide. Here’s a quick technical breakdown.
One technical view would be to see the current price levels around the neck level of a Head & Shoulders pattern. If we can assume that’s the case, from a purely technical perspective, where does it go from there?
To answer that question, let’s look at it from a price action perspective. Notice the series of 1-2-3 patterns. Notice how the consecutive 1-2-3’s form consistently lower swing highs and lows. Also, notice the 50 simple moving average curvature; one turning down.
At this point, its a matter of either seeing a continuation or a break from this pattern. A break above the most recent swing high, coupled with a failure to breach the bottom support, indicates a potential trend change; one that typically leads to either a range or a trend reversal. This, of course, depends on the fundamental conditions of the company and industry.
For now, the downtrend remains until a contrary signal warrant a change in outlook.
The risk of loss in the trading of stocks, options, futures, foreign exchanges, 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 foreign exchanges 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.