Canadian CANNAINVESTOR Magazine October 2017 - Page 236


What’s better than a cup and handle? A smaller cup and handle from the handle of the first cup. That my friends is what we are witnessing within Harvest One. Wait, what is a cup and handle? Another great question, glad you asked. A cup and handle is a chart setup that appears to look like a...wait for it… cup and handle. The first portion of the cup is when the bears have control, then it reverses and the bulls take over. It is commonly understood that by the time the prices get back to where they started people feel relieved and don’t want to endure another bear run as in the first part of the cup and so they sell. This selling pressure causes a smaller bear run that we can observe in the handle.

Cup and handles like the one Harvest One is displaying are generally bullish in nature. It is recommended that we wait for the prices prove that the bulls are indeed in charge. Your cue to get in would be once the prices climb above the upper trendline of the handle. We can get a gauge of the likelihood that a cup and handle will work out by observing some of the other technical indicators we have discussed. Let’s take a look at the CMF (Chaikin Money Flow) for Harvest one. We can observe that the CMF is positive (green). This means that people are willing to pay a premium for the shares so to speak and that more shares are being bought on the white candle days vs the selling on the down red candle days. Harvest one is looking technically primed. Keep a close watch on this one guys!

Harvest One Cannabis Inc. (TSXV:HVST)


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