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OK, now that we have finished talking about CANN, let dive into the charts on CANN. Wait a minute, is this deju vu? Nope. There are two marijuana companies with the Ticker CANN. Mind you they are on separate exchanges, but I bring them both up today as something you should be aware of as these two companies are not the same. We will talk about General Cannabis Corp and discuss a technical tool that can be used to help us look for areas of potential support when the chart starts to break down.
One tool that is often used in a technical analyst tool belt is Fibonacci retracement (fib). I already promised you there would be no math lessons so I will not get into the details as to how it calculated, and simply stick to how you can use it. Simply put, once a stock has run, and then begins to decline we can map out amount the prices from the bottom before it ran to the top and before it has begun to slide back down. When the price falls back to certain key areas in terms of a percentage of price differences, this is were we look for potential support. Key areas to find potential support would be after declines of 23.6% for a light pullback, 38.2% - 5050% for a moderate pullback, and 61.8% as the golden retracement level. Now I would like to point out that fib on it’s own is not necessarily your support area, it is recommended you pair this up with your other tools from your toolbelt to very if the probability if the suspected support level is likely.
General Cannabis Corp.
(OTC: CANN)