/biz/ - Business & Finance

Hmm. HMMMMMMmmmmm......

I have been fiddling with this RTI trade for a couple weeks now and it's developing in to something pretty interesting. This is more TA than I normally do but the pattern is curious. There are external factors that caused this to play out in this particular way; correlation with Aurora Cannabis (large stakeholder, business agreements) and short pressure also due to the ACB correlation. Market is hesitant on ACB just because they made a bunch of dilutive acquisitions this year and don't appear to be planning to stop that activity in future.

Anyway. It has formed a symmetrical triangle on the daily chart. Symmetrical triangles are neutral on predicting future price movement aside from indicating the price will break out of the pattern some kinda way around the point of the shape. They're also useful for setting stop loss; stop goes below the lower line while price is within the pattern, then stop gets moved to the upper line on the day of the upwards breakout (if it does break out to the upside).

By my estimation, this is bullish when viewed in conjunction with the weekly chart (see next post).