We might have seen the bottom for the Cannabis stocks. I really like the candles being formed. More downside is possible to 8-7.5 where i would buy again.
Below that is just bad. I don't often do a 'path' prediction, but i give it a shot. Iw we don't go further down, imagine the path botom starts here :).
So, on the daily chart we bounced form the...
Start of an uptrend? legalization is rolling out across a massive market, America.
Price has popped and now retraced back to the 61.8% Fib level - significant.
It's a marijuana ETF, broad exposure across a huge sector.
last weeks Doji.
This is a perfect indicator to determine the trend direction!
✅ Uptrend strategy:
When RWI high (purple in this video) is above the RWI low then the trend is up.
Combine this indicator with the Fisher Transform indicator, then open long positions as per the Fisher Transform when the trend is up.
✅ Downtrend strategy:
All TP's was done from prev Idea.
Now we stay on TP1 or 14$ support line.
What to do on Tuesday if you buy on 18$+ or want to buy?
We have 3 scenarios:
1) Panic sell continuance. My SL right now on 13$ lvl. The best idea here close the position by SL if we drop under 13$.
2) Bullish: we consolidate or start growing to 16$ and break out to 18$.
You wish you could have owned alcohol companies at the end of prohibition. Here's your second and last change at a trade like this. Marijuana is a far less destructive and harmful drug than alcohol with many medical uses and now more socially acceptable than ever. Just wait until mdma and mushrooms come out with more research for these early players to really take off.
So far so good.
The gains are holding, and day trade opportunities are everywhere in the cannabis show.
The blue wave has a lot to do with it. Imagine that a market with 300m people opens up and its ready to be taken....US legalization.
Technically, its good.
Good Bullish Trades!
Now that the vote on legalization has been postponed till after the election, it's hard to find many catalysts to help get the sector out of the doldrums. Much of the bad news has been priced in, but perhaps not enough. It seems bankruptcies are being factored in based on its price action. Let's see...