Chart of the Week!

This is a common mistake when charting To view this email as a web page, go [here.]( Hey There! Today I wanted to look at the chart for THC: THC is in a slight upward trend, with big moves up and down along the way. A lot of people see a chart like this, and they like to outline the channel. This way they can watch for breakouts above and below, or even play the bounces between the channel lines. That would look something like this: You can see that even recently, THC hit that channel top boundary and failed almost instantly just like it had done in the past. Using this information, you could justify a possible short entry. So what would the target be? $72 is the bottom of the channel… Could that be our target? It could be. Especially in this market. But if you look at the chart, you can see that the bottom trend line has only been hit twice. One thing I’ve noticed when folks heavily rely on channels, is that it can sometimes give them tunnel vision… (literally) It’s easy to ignore other support and resistance levels that could slow or even act as bounce levels. Like any of these: I think using channels to spot trends can be great! When they show steady support and resistance, those levels can be pretty reliable. But it’s important to be aware of recent levels. Like right here where we can see a few days of heavy volume: That could act as a support or at least slow things down (which is important if you’re trading options). I do think we are at a key level for THC. Any bounce here could set up a reversal… a strong move down past $85, could cause a squeeze down. Let’s keep an eye on things, to see how it plays out! If you like looking at charts like this, join me on my 1k Club calls every Monday! Ask questions, suggest charts to look at, and see what I’m watching for. [Click here to join]( Hope to see you Monday! Happy Trading Markay [Manage Your Email Preferences]( [Unsubscribe]( This email was sent by: InvestPub 495 Town Plaza Avenue Ponte Vedra Beach, FL, 32081, US [Update Profile]( We respect your right to privacy. [View our policy.]( Markay Latimer and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.