Emerald-Health-300x112 Emerald Health Therapeutics Inc (EMHTF) Continues Its Downward Slide

 

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.

 


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