Everyone has forgot about Weed stocks...retail bought the $50 top like usual with the media's help. It just broke the down trend and is forming a reverse head and shoulder bottom...Now is the time to be adding, not when the TV tells you to buy. Don't be a sheep....
I think this is a fragile setup. We could be looking at distribution, rather than accumulation. As long as it trades below $21.65, there is no confirmation that the downtrend has been broken. The next earnings call is likely to show more siginificant losses, and the bottom could be around $10. At that price level, the valuation would be in balance with cash, cash equivalents and assets. From that point, smart money may again take an interest. On retail investors alone, there won't be much upside, as the bears simply play them down.
Just my 2 cents. What I am saying is, caution is advised!
Dilloo22
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@Barkworth, Appreciate the comment! I posted an updated chart showing the downtrend break I was referring to from the $52 top in April 2019 to now (forgot to include it). I don't disagree there is potential for more downside, and caution should always be taken, but I do like the risk/reward in this area. Ideally I would be happy adding in the $15-$16 ballpark. I don't think there is a major rush to build a position. I most likely see a period of consolidation and accumulation. I would be adding in the $15 area and trimming in the low $25 ballpark.
Barkworth
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@Dilloo22, I agree. We should see a long period of sideways trading for most pot stocks. Thanks for the response.
Dilloo22
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@Barkworth, I like the GWPH set up here (just posted a chart).
SteelyRivers
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@Barkworth, Recency bias has clouded your view. The volume is not lying, and it's across the Pot board.
Barkworth
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@counsellorvasquez, I appreciate the comment, as that is why we are here: to help each other. I'm very cautious, and I think that the current setups are extremely fragile. We'll see what the coming week will bring, but the slightest shard of bad news will send everything tanking again. I don't see any smart money buying, it is just us ordinary folks. I'm thinking we should all keep our heads in the game, buy at support, use stop losses and sell at resistance. We may see some short squeezes, but there is no telling where the current rallies are going to stop.
I agree, I can be a bit pessimistic. It is less expensive than being too optimistic, however.
Lets see what the coming week will bring. I do have to say, as long as SPY keeps performing, it does add an extra layer of bullishness.
Barkworth
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Actually, there was just one stock that made another high on Friday. The others only look exhausted for now.
Just my 2 cents. What I am saying is, caution is advised!