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      Published: 2 years ago
      Author: BullishCharts

      #MarijuanaStocks | $MJ is Not Up in Smoke Quite Yet 🚬

      Warren Buffett once said that as an investor, it is wise to be “Fearful when others are greedy and greedy when others are fearful.”  Money is not made by buying tops, but by buying the bottom. Wise investors have the ability to detach sentiment and emotions from their investment strategies.  The Cannabis sector has indeed been a true test of this logic, throughout 2019 and 2020; as we have seen sustained selling and, in particular, the recent failure of rallies have increased the fear factor exponentially.

      First, Let’s Consult the 1-Week Chart of the Alternative Harvest ETF (NYSE: $MJ):

      The intensity of MJ‘s recent drops are very evident; but what is less evident is that the decline has now surpassed Fibonacci extension and expansion support levels, and key support now lies between $16.10 – $15.90.  From an optimistic viewpoint, we have now had 3 months of a possible basing pattern and encouragement should be taken from the fact that volume is higher on green candles and lower when red.


      The Daily Chart on $MJ should Also Offer Some Assurance 🙌 to Investors that a Possible Turn is On The Horizon 🌅

      Bullish divergences are quite evident for MJ on the RSI and Momentum indicators, while Stochastic and Accumulation / Distribution are approaching historical bounce zones. The selloff last week, as a result of negative news flow from Tilray and Aurora, in particular, has now set up the possibility of a triple bottom. As discussed earlier, trade volume is not particularly bearish, but maybe a final washout is required for the industry.

      Weed 2

      This Week could be Pivotal for the Long-Term Direction of the Industry.

      Earnings from some of the major industry players could possibly provide some foresight, as to what lies ahead for MJ and other major Cannabis stocks in the days and weeks to come.

      Final Thoughts on $MJ & the Marijuana Stock Industry in General:

      To summarize, we believe that now is NOT the time to get shaken out of MJ or the Marijuana industry, in general, by negative analysts commentary and media coverage; as recent events within the stock activity of Tesla (TSLA) document how quick the tide can turn.

      Click Here to View our Most Recent Chart Analysis on TradingView™


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