Weed Sector Capitulation and Accumulation (MJ)

AMEX:MJ   ETFMG Alternative Harvest ETF
What's going on with weed stocks?? There are justifiable claims that some of these companies could still be overvalued. However, despite declining price, On-Balance Volume remains relatively high compared to what we saw during the last major downward swing between March 2019 and March 2020. This could signal accumulation. Additionally, the UO ( ultimate oscillator - red) shows a bullish divergence on the daily chart .

People who own weed stocks know they need to be patient. The more capital and wealth one has, the easier it is to be patient. This drives accumulation by wealthy entities. I've noticed signs of emotional capitulation by retail weed stock owners. Sentiment is truly awful. Meanwhile, price is just barely sitting on a major horizontal support level .

Interestingly, MJ didn't start to truly bounce from the 2020 lows until Bitcoin started to make its rally towards all-time high last fall. Does the weed sector follow once more?
Below here, and the next support isn't really until around $10, so I see this as a pretty fearful moment in this sector. If it gets down to those lower levels, perhaps I'll purchase more. I'm not really in any hurry. Even in a financial crisis, weed will not lose demand. In fact, as mental health issues increase, so do coping strategies such as smoking/using weed. The weed industry also involves the stable price of a good. Goods and services won't go anywhere in a financial crisis. Weed is a particular kind of resource , so I think it will trade differently. This is part of my reasoning behind my own accumulation.

I guess we'll see! If MJ can bounce hard from these levels, I think it can complete a longer term accumulation process and begin to exit the trading range.

This is not financial advice. This is purely for speculative and entertainment purposes.

-Victor Cobra