NEPT covered callsI got this stock when it was assigned to me at a landed cost of $3.65 and today on this 20% pop I sold 6 strike calls for 60 cents so this either reduces my landed cost to $3.05 or gets me out at equal to $6.60 for very close to a 100% gain
Trade ideas
Extracting those gainsNEPT is getting ready to fly high (get it?)
1. Bullish engulfing on the daily
2. Strong support on the 50 MA on the daily
Neptune Wellness triangle breakout in progressNeptune Wellness looks to be making a bullish move above the triangle it's been forming.
$NEPT 5/30/19: Prove it bulls!TraderNoxtreme here with a quick $NEPT analysis per request,
Let's jump right in.
$NEPT had a bearish short term and bullish to bearish mid-term turn.
This being said we have a clear cup and handle formation for our May price action.
MONDAY will be KEY in determining what to expect in June.
BEAR case
- If we get a gap down on Monday the cup and handle pattern would pretty much invalidate (if it hasn't already since we have seen a more significant retrace on the handle). If we gap down, I would expect a test of our previous support at 3.97. If we break 3.97 I would expect we would find support between 3.83 and 3.76. There seems to be a lot of support below that.
- MacD on the daily and 4 hr chart is trying to make a bearish cross. Leaning to bear continuation.
- RSI in a downtrend on the daily, 4hr but still in the 50s (neutral).
Bull case
- We have a tentative break of our short-term downtrend line (handle of our cup). If we stay flat or gap up Monday, I will be looking for the cup and handle confirmation which would swing us back up to 4.70ish. We have a nice green gap up after hrs indicating this could indeed be what happens BUT after-hours trading is very unreliable to take it as a grain of salt.
- We have a solid RSI bounce right off oversold on the 1 hr time frame indicating bulls were just taking a break because we have been forming higher high peaks since march.
- MacD is also curling back up to make a bull cross on the 1 hr and might be rejecting the bear cross on the 4 hour. Weak support of a bull case here but it is weak at best.
- Bullish cross off the 50 and 200 SMA on the 1hr two days ago and also a bull cross of these moving averages on the 1d char back on the 23rd. We also have all the moving averages squeezed together right at our current decision point on the 1 hr. In this case, I think this adds to our case for bulls reversing the short-term trend but under normal circumstances this indicates the move we get will likely be explosive in whatever direction we go.
Conclusion:
If we open Monday flat or gap up, I am expecting continuation up to 4.70 potentially, or higher. 4.70 stand out to me because the uptrend line on our HH peaks meets there nicely. (I do see our 4.37 peak did not touch but it would if I use candle bodies so I am giving it the benefit of the doubt here)
Else
We gap down Monday. It is likely we will retest 3.97 (or open there) and continue down to look for support between 3.83 and 3.76. There is a ton of previous price action for support down here but this stock has a history of setting lower highs and lower lows as it bounces down through previous support levels so depending on your time horizon be cautious if these levels break because we might go through another extended period of consolidation.
I am also leaving out news completely here which is a BIG part to the MJ story (it’s a hype market). Being said, I feel that the charts tells us when news releases will come as it seems they often come right when technicals indicate a shift or a catalyst is needed for continuation/confirmation. Right now seems to be a perfect time for a bullish story to hit and confirm the bull hypothesis.
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Pennies Away From A Blue Sky BreakoutThis stock closed on Friday just .07 away from Clear Blue Sky's. With the bullish news about Mexico and the US coming to agreement, and the fact that China has decided to talk to the US about the trade negotiations again, we could very likely see a blue sky breakout. What is blue sky breakout? - I'm glad you asked :) Blue Sky refers to new highs with no resistance in sight. The stock trends up as and clears it's all time, or at least three months of prior highs....very bullish. Keep your eyes on this one early to see if it opens with the same explosive volume it had on Friday.
$NEPT STOCK JUMPS ON 3 YEAR TILRAY DEALNASDAQ:NEPT TODAY ANNOUNCED A 3 YEAR DEAL WITH NASDAQ:TLRY , THIS IS EXTREMELY POSITIVE AND LUCRATIVE FOR THE COMPANY, WE EXPECT THIS TO RUN MUCH HIGHER IN THE DAYS TO COME.
NEPT - Sleeper in the cannabis industrytransitioned from Krill oil to cannibis oil and a monster deal with CGC ... market hasn't noticed
Price Momo ReversalNEPT finally filled the gap to 2.98, the trendline held support, and it has been in a strong recovery ever since. DPMO crossed above signal line, RSX crossed above midline. The last three trading days, NEPT has been testing the downward trendline resistance that has been forming since September. Although "technically" the TTM squeeze did not fire, you can see the bands squeezing the keltner channel on the chart.
On watch for a breakout above the downward trendline resistance and Ichimoku cloud. I'm buying the breakout above 3.50.
neptune daily lookin gooddaily looks like it may have found support and trend indicators sh0w positive (in upward trend) check indicators in AM may be buy give or take few cents- ong run doesnt matter right?
Still holding long A weed company who is in the right direction IMO
Correction is normal. As you can see from previous updates. It’s still up
NEPT Consolidation - Bull PennantI haven't been charting long, but one thing I've learned - if it ain't broke, don't fix it. After last week, a lot of my charted predictions went to shit, but NEPT held up. I've used this chart to swing trade Neptune since late August/September. The trend line has held up beautifully and gotten me in at three excellent entry points.
Some things to note after 10/12:
(1) We've got a beautiful bull pennant formation which looks like it should break out by the end of the month. Lots of consolidation between 3.80-4.20.
(2) We've got a green hammer candlestick from Friday - this could signal a breakout early next week; however, I'm cautious on this because the hammer only formed at the end of the day as buyers came in during the last hour. This was likely caused by anticipation of possibly receiving their certification from Canadian authorities, which have historically been released after-hours on Friday. No certification came, so those buyers may jump ship Monday morning. If so, this presents a prime buying opportunity. The last three dips I've taken positions at 3.86, 3.95, and 4.02 (yesterday). I selected those price points based on this chart, and so far they've been near perfect entry points. Unless there's a larger sell-off Monday morning, I do not think you'll have a great opportunity to get in here again below 4.00.
(3) Next week's news will focus on legalization in Canada. I predict pot stocks will see a significant increase in traffic. When the big pot stocks see an influx in volume, NEPT usually does as well. I suspect that the more patient, conservative buyers see it as a less volatile, higher growth opportunity than say TLRY or CGC - for those who don't want to pay the premium on the big tickers, NEPT looks like a "sneakier" high-upside play, especially with a major catalyst on the horizon (see below).
(4) When letter of readiness was issued, NEPT jumped to 5.15 (albeit briefly); I think that gives us a nice floor expectation of where the breakout will go when NEPT actually receives its license. If you swing trade, you may be able to play a small run-up that occurs pre-license, because I believe that we'll see price return to the 4.00-4.20 level until the license is obtained.
NEPT Bounce Coming?I think there's another bounce coming for NEPT - I would try to buy today sub-4.00, because based on the trend I don't see this getting back down into the 3.80s. As far as catalysts are concerned, I think it's a little early for canadian license to be delivered, but from what I've seen they are usually announced on Fridays - so if NEPT license were to come PM or AH tomorrow, I wouldn't want to be standing on the sidelines.
NEPT Retracement This AM, NEPT retraced almost perfectly to the .5 level and appears ready to run again. Watch closely today to confirm if 3.86 support holds
NEPT May Have Found BottomOn Fri 09/14, NEPT started putting in higher lows, and we appear to be entering a symmetrical triangle, indicating it has found a bottom. Will monitor through Monday to assess if the bullish trend continues, and if so, will start with a small initial long position.
