Bull flag measured target (distance of flag pole added to the lowest part of the flag) has now been hit on NXTTF with a decent red candle forming so far today. Potential negative divergences on RSI building as well. Personally, I wouldn’t chase this one here & if I did own it, I would be booking profits & looking to recycle back in on a pullback if & when the charts confirm, maybe around the $1 level.

Looks like I accidentally skipped over CANN. Here’s my daily chart. The stock is currently making the 4th test of it’s all-time highs… a key technical level. The recent pullback appears to be flaggish-type action which would be supported by the fact that the current rally that followed that pullback has been equally impulsive as the rally leading up to the formation of the flag.

At face value, the chart looks very bullish, assuming that CANN can clearly take out the 5.20ish level (new highs) as the measure target for the flag would be much higher. However, there is some pretty strong potential divergences forming on the daily time frame. If those divergences are confirmed soon & CANN either reverses sharply off this resistance OR briefly breaks out to new highs but falls well back below the 5.15 level, that would be bearish.

With the stock & the sector so overbought at this time, I would prefer to see CANN consolidate for a while to digest the recent gains before breaking out to new highs. If the stock & cannabis sector continue to rally for a while, then a convincing breakout to new highs could propel the stock to the $10 area. Overall, I think that if the stock breaks out soon (but a fair margin as it is trading slightly above the previous highs now), that breakout is likely to fail soon.

Will do asap.