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I wanted to follow up with Organigram that we touched on last issue. To recap, we had previously shown how it had been trapped in a descending triangle before finally breaking out to the upside. This break out of the wedge coincidentally ties into the quote displayed in the opening paragraph above where the storey truly mattered once it broke the wedge. After this bullish breakout you will notice that on the daily candles the RSI has been flirting and surpassing 70. As a recap, recall that over 70 is considered as an overbought condition. It has since cooled down some dragging the RSI back down to normal levels.
Something I wanted to point out to you per Organigram’s daily chart here is the golden cross. What is a golden cross you ask? That’s a good question. The golden cross occurs when we crossbreed a golden retriever with a poodle. Oh, wait a second. I think I got my golden’s crossed. That one I just mentioned was a Golden Doodle - clearly not applicable here. A golden cross on the other hand is when a shorter time frames moving average crosses from below to above on a larger time frames moving average. Typically on the daily candles we see the 50 day moving average move above the 200 day. This is typically seen as a confirmation of bullish momentum. Mathematically this makes sense. But I’ll spare you the math this time. Just look for increased volume from this point forward to confirm the overall upward price movement. You can pair this with other indicators we talk about here for additional confirmation.
Organigram Holdings Inc.
(TSXV: OGI)