OH Bullish Divergence|Local Resistance|EMA Cross| Higher Low

2019년 12월 25일

Hello Traders – Merry Christmas!

Today’s chart update will be on CANNAROYALTY CORP OH where a valid bullish divergence has come to fruition.

Will OH have enough momentum to break local resistance and put in a new higher low?

Points to consider,
- Trend bearish
- Local resistance at 4.950
- Local support provided by EMA’s
- Stochastics in upper regions
- RSI diverged, Respecting trend line
- Volume above average

OH is currently in control by the bears, consecutive lower highs have been in place, a clear trend change will require a daily higher low.

Resistance is found at $4.950, a key level for the bulls to break as this will put in a new higher low, negating the bearish trend structure. Support comes from the EMA’s as they cross bullish at resistance. This needs to maintain for a bull break of the key local resistance level.

The stochastics in currently in the upper region, it can stay here for an extended period of time, however lots of stored momentum to the downside. RSI has diverged from price, needs to maintain its trend line for a bullish bias.
Volume is above average, OH needs continued bull volume follow through if it is to break local resistance.

Overall, in my opinion, OH needs to break local resistance convincingly with follow through. This will change the overall market structure, putting in a new higher low. An entry will be valid on the bullish S/R flip re-test of the local resistance.

What are your thoughts?

Please leave a like and comment,

And remember,

A streak of winning trades can boost your ego and self-confidence to such an extent that you start believing that you’re invincible. If that is the case, try to take a break from trading to calm your emotions down.