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Technical
Analysis
of the United States
Cannabis Market
TerrAscend describes itself as a company that “provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the US, the Company participates in the medical and legal adult-use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use.” While this company description in this space might be oversimplified, perhaps we can oversimplify what we are looking at on our charts when we compare the price action of the stock. We have all heard the acronym KISS, “Keep It Simple, Stupid” - Sometimes applying this logic to our charts can help us to not overcomplicate things.
To help simplify the momentum of a stock's performance we can look at its Rate of Change - here on in referred to as ROC. ROC is a momentum oscillator that helps us measure the percent change in price from one period to the next. Generally speaking, we can see more bullish price action then the ROC is positive and bearish when it is negative. The ROC can also be used to help spot bullish or bearish breaks as well as help us identify shifts in the sentiment of the stock such as divergences. The ROC can also be used to help find oversold or overbought extremes when a stock is trending in a certain direction as well. When ROC heads over 10 it may be time to consider if it is overbought. On the contrary, if it dips below -10 then perhaps it is oversold. Of course, we recommend that you combine this technical indicator with your other preferred charting signals for verification. Let’s take a look at the TerrAscend chart to see how we could use ROC to help us find both trends and oversold or overbought areas. Remember not to overcomplicate things and keep it simple by incorporating indicators such as ROC into your charting analysis.
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TerrAscend Corp: OTC: TRSSF