Pot to me looks like the value play for this decade. Most view it as dead $ given the run on crypto and tech but I see a wave II corrective wave that's close to completing.
3 things need to happen for a true bottom to get painted here:
1) The drop needs to shallow out. We want a lower low that's on that 1x1 Gann angle (but not any steeper!). My hope is that this takes place somewhere in the $6-$7 range as the ABCD completes. The theory is that wave II is a flat or zigzag so we're on the tail end of a 5 wave terminal wave C.
2) Volume needs to keep growing. You already see it but IMO as money starts to leave traditional equities in a likely correction soonish (future post) you'll start to see it pour back into beaten down sectors like cannabis.
3) Progress needs to be made on the legislative side. DUH... but as mid terms start ramping up I'm expecting both parties to try and one-up each other in trying to take credit for actions toward legalization. Likely it will be lots of rhetoric with little progress so not getting my hopes up... but there just has to be a small catalyst to turn the technicals around.
I've taken starter positions in CGC, CURLF, CRON, TLRY and will continue to accumulate as they drop. No options here as time is not our friend. Stay patient my friends.
Love it. Thanks. I'm doing a long term DCA on it, because its not being talked about now. But when it pops up on the radar... i'll be selling!
FlyingDutchman100
⋅
any update on this thanks
chinawildman
⋅
@FlyingDutchman100, no technical analysis is going to figure out when federal legislation will happen... chances are it'll bottom out around the same time the entire market takes a dive here in the next several years
FlyingDutchman100
⋅
@chinawildman, thanks. ain't talking about that. technically speaking only, do u see it bottomed at .50 as an abcd extension in time and price also ? thanks again.
BTFD-MW-IHS
⋅
you got to think we have arrived at the bottom or very close to it right here right now. what do you think wild man
chinawildman
⋅
@BTFD-MW-IHS, I'd calculated the bottom to be when TCNNF hit $11. That has already happened, yet I think the broader market still will fall a bit more before making a modest recovery. We'll see, legislation is the only fundamental that matters right now.
BTFD-MW-IHS
⋅
@chinawildman, Agree! Think CGC sees $9.00 within the year? I think thats a decent top end target, if not 14
chinawildman
⋅
@BTFD-MW-IHS, $14 looks like a reasonable near term upside target if it recovers a bit
Acient1
⋅
When will this bottom out? The downtrend is not relenting. Will this become a penny stock? If so then a reverse split will happen.
chinawildman
⋅
@Acient1, all stocks are sinking due to the overall market selling pressure. If you can predict when the market itself bottoms then it's probably when this bottoms. Unfortunately I don't think the market will stop falling until at least July-August