I am bullish on the weed sector because :
- It a new industrie that have big potential in the recreational and medical market. (country start to legalise marijuana and the demand is here)
- We start to see more solide sales and profit for compagnie.
- New countries are starting to look to legalize cannabis, including the United States. (Definitely a big market and a good sign for this industry)
On a technical approche,
- We had a 2,5 years of 'correction' after the frist 'bubble' of this sector. ( = we have room to go to the up side)
- Last week we broke the high of 2020 (this is a good sign for a much bigger run)
- Some media restart to talk about this 'promising industry' and this probably means new capital will go in this sector. (= Asset will appreciate = the price will go higher)
On a more speculative note, here are my tought on the future price action :
- Price could retrace tomorrow and for a coupple of days but i dont think it will happen. I think we will see more of FOMO from participant and more short squeeze to push higher the price.
- I see, right now, the 25$ price, to be the next big stop. From 25 $ I think we could see some retracement, consolidation or, hopefully, a nice bounce from this level to push the price higher.
To conclude :
The difference between this new rally and the previous one, is that, this new rally is backed w/ number. Sales and profit will be usefully to keep value in these asset during the climb.
- It a new industrie that have big potential in the recreational and medical market. (country start to legalise marijuana and the demand is here)
- We start to see more solide sales and profit for compagnie.
- New countries are starting to look to legalize cannabis, including the United States. (Definitely a big market and a good sign for this industry)
On a technical approche,
- We had a 2,5 years of 'correction' after the frist 'bubble' of this sector. ( = we have room to go to the up side)
- Last week we broke the high of 2020 (this is a good sign for a much bigger run)
- Some media restart to talk about this 'promising industry' and this probably means new capital will go in this sector. (= Asset will appreciate = the price will go higher)
On a more speculative note, here are my tought on the future price action :
- Price could retrace tomorrow and for a coupple of days but i dont think it will happen. I think we will see more of FOMO from participant and more short squeeze to push higher the price.
- I see, right now, the 25$ price, to be the next big stop. From 25 $ I think we could see some retracement, consolidation or, hopefully, a nice bounce from this level to push the price higher.
To conclude :
The difference between this new rally and the previous one, is that, this new rally is backed w/ number. Sales and profit will be usefully to keep value in these asset during the climb.