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Callitas Health may be a company you have not heard very much about, but if you look into what they are doing with cannabinoids it is rather interesting. Of course, we will end our educational tutorial on the company itself here and take off with the technicals at play. After all this is the section of the magazine you want to get learn more and help get your charting skills higher. One thing we often talk about in technical analysis is support and resistance. It is strongly recommended that people become familiar with this terminology as it a staple in any technical analyst diet. We often hear and can see the prices are trending. Today let's take a glance at trendlines and how we can use them to help us chart Callitas.
Callitas as you can see by the red downward
sloping line was in a downtrend. We can draw
a downwards sloping line here that shows us
resistance. While the prices were held
beneath this line we would look at the chart as being bearish. If you look at what happened at the end of the red line you will notice that the prices broke out up and beyond our resistance line. This is a bad sign for the bears and starts looking good for the bulls. From there we can see the beginning of what could be a new trend, an uptrend otherwise known as support. The most recent trend appears to be favouring the bulls, but like most things technical it would be best to pair this charting technique up with other indicators and not rely on this alone. Note that for resistance we draw a line at the top, whereas for support we draw a line at the bottom of the candles. When the prices break these line, then the particular support or resistance you have charted has been broken and this can help you to better gauge when you should buy, hold, or sell a stock when combined with other indicators as confirmation. This chart does seem to have a similar feel as Maple Leaf Green World inc. did prior to it’s recent bull run that has begun, just at a earlier stage now for Callitas. This is good if this assumption is correct. Let's watch the trend on this one folks. Remember the trend is your friend.
Callitas Health Inc. (CSE: LILY)