218
I like rounded bottoms and I can not lie. You other brothers can't deny. That when a chart walks in with no upward momentum and then there is a rounded bottom in your face, You get bidding. There you have it ladies and gents - a chartists version of Sir Mix-a-Lot’s famous song when talking about the chart setup commonly referred to as the rounded bottom. So to be clear here, we would like to share with you a fairly easy to spot charting setup. If you look at the chart of CHV you will see what appears to be a rounding near the lows. This is our rounded bottom.
A rounded bottom is typically associated with a bullish reversal. That is, initially the share price is moving downward and then gradually becomes rather flat in change before the prices gradually start moving upward again. One thing to look for with a rounded bottom is to check that as the prices start to come off the lows that the volume is also following suit. That is to say that the volume is starting to increase as well. Of course with CHV we are predicting the future somewhat as we do not know that that bottom will complete its roundness so to speak as of just yet, but it is OK to to make educated guesses especially when you combine them with other indicators that we have discussed within a bullish market such as this wonderful marijuana green rush we are currently in.
Canada House Wellness Group Inc. (CSE: CHV)
Wrap
it Up >