Technical Alert: Aleafia Health (TSXV: ALEF) Bull Pennant Breakout

Company: Aleafia Health Inc. (TSXV: ALEF) (OTCQX: ALEAF)

Technical Chart Pattern: Bull Pennant

Shares of ALEF closed trading today at $3.50 per share, up 14.4% on the day with over 4.96 million shares traded. The stock closed at the high of the day on a strong surge in afternoon volume. Most importantly ALEF broke and closed above the upper line of its current bull pennant continuation formation.

Bull Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance with heavy volume.

Look for a large increase in volume tomorrow to help confirm the move. Often times the stock will test the breakout point from the upside before continuing its rise.

What are Pennants?

A pennant is a continuation pattern in technical analysis formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines, the pennant, followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole.

https://www.investopedia.com/terms/p/pennant.asp

Best of luck to you all and happy trading.

Ryan Troup

Editor in Chief

The Cannabis Investor.ca