Emerald Therapeutics (EMHTF), the 10 largest cannabis stocks by market cap, is a major Canadian cannabis grower. From December 2017 to February 2018, trading volume jumped as was the case with all cannabis stocks. Technically, this increase in trading volume and volatility resulted in movements that somehow form a Head & Shoulders pattern, a bearish pattern whose negative outlook seems consistent with the current price movements.

Emerald-HS-300x197 Market “Highs”: Emerald Health Therapeutics – Two Technical Views

The short-term resistance seems consistent with the pattern’s neckline; April support matching those of December 2017 levels.

But how low might it break down should it violate support?

Here’s another technical view to consider:

Emerald-Fib-300x286 Market “Highs”: Emerald Health Therapeutics – Two Technical Views

The April and December lows sit between the 0.618 and 0.786 range of a Fib retracement. For some traders, 0.75 is the bearish “uncle point.” Given this reading, and that fact that support lay within that range, we can assume that traders/investors may be eying that range as a good buying opportunity; the relatively increased buying volumes attesting to that possibility.


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