HMMJ has broken out of this long term down trend. The sector could gain some momentum again if there is any favourable news about easing US laws regarding MJ. I would expect resistance coming into the 236 fib retracement. I will take the sector more seriously if price can consolidate below that level and then break higher. No positions yet.
Cannabis is still in the early fases off acceptance and adoption. Wild swings are expected.
I expected this drop, looking at my previous anlyses. For long term holders this is no big deal.
Looking at the RSI on the daily level, it is oversold, also touching the 0.236 FIB level. This is a perfect buying opportunity.
I do see the risk it to go in "extreme...
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$.