High Tide Stock Could See A Breakout In The Coming Weeks: Here’s Why

High Tide Inc (NASDAQ:HITI) shares climbed higher Friday on continued momentum after the company announced Thursday it would release its financial and operational results for Q2 of 2021 after market close on June 28, 2021.

Friday the stock was trending on social media sites such as StockTwits throughout the day.

High Tide was up 5.63% at $7.50 at last check on Friday afternoon.

High Tide Daily Chart Analysis:

  • Shares were falling the past few months, and are forming into what technical traders call a falling wedge pattern.
  • The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
  • The 50-day moving average may hold as an area of resistance, while the 200-day moving average is somewhere the stock may find support.

Key Levels To Watch:

  • The stock is trading within a falling wedge pattern and may not see a breakout for the next couple of months, unless there is a catalyst making the stock move.
  • The falling wedge pattern is a bullish reversal pattern that happens after the stock makes a large run up and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
  • The Relative Strength Index (RSI) has been falling throughout the past couple of weeks and is now starting to see a bounce. The RSI sat at 37 Thursday, and Friday climbed back higher to 43 becoming less oversold.
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What’s Next?

Bullish technical traders would like to see the stock continue to trade within the falling wedge pattern and head toward the pattern resistance. Stocks that stay near pattern resistance while trading within a pattern are more likely to break out.

Bulls would also like to see the stock cross above 50 on the RSI because above 50 on the indicator means that there are more buyers than sellers.

Bearish technical traders would like to see the stock fall below the pattern support. If the stock fell below the pattern support and was able to hold below this level, then the stock may see a stronger downward push. Bears would also like to see the RSI drop further and fall below 30.

(Image by Ganja Spliff from Pixabay)

View more information: https://www.benzinga.com/markets/cannabis/21/06/21629500/high-tide-stock-could-see-a-breakout-in-the-coming-weeks-heres-why

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