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GTEC Holdings Inc. (TSXV: GTEC)
GTEC is a company that defines themselves as “comprised of multiple cultivation facilities under Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”) each with a unique focus and strategy.” Like GTEC’s strategy of multiple cultivation licenses we want you to have multiple ways to recognize great technical setups. Today we will discuss one of the lesser known but still valid candlestick patterns. What’s sexier than a piercing you know where? I’ll tell you were. On the chart in the form of a bullish piercing candlestick. What were you thinking?
The bullish piercing candle is similar to the bullish engulfing candle that we covered in our March edition. Click here for reference: < insert link to March 2018 mag.> While the Bullish engulfing is a stronger signal than the piercing, make no mistake that the bullish piercing candlestick pattern can help you find a successful setup when combined with your other favorite charting and technical analysis.
There are two candles in the bullish piercing candlestick pattern. The first day (candle) is where the bears are in control and push the prices down from the open and close near the bottoms. The second day opens up lower, but the bulls quickly charge and bring the candle up so that it closes halfway through the body of the previous days' candle. The higher above the halfway point the second bullish candle is the more bullish it is. Generally, this candle is best used when noticed after a down-trend has occurred and this signals a bottom. While on GTEC’s chart the downtrend it was in was brief, it was there none the less, and when you air this candlestick pattern with some of your other indicators it makes for bullish entry. Also, note the candle at the top of the run form the bullish piercing pattern. Can you guess what this candlestick pattern is? If so feel free to reach out and let us know. So, which piercing is it that you find the sexiest now?