I've enjoyed making profits on the new alternative harvest stocks, and I've been watching MJ as my industry benchmark. CRON seems to trade the best for me of all the tickers I've tried, but I took profit a couple of days ago and you might want to consider doing so now if you haven't already. Advanced traders would benefit from a box collar, but I'm not comfortable with options and am not comfortable limiting myself to even lot actions at this time. Short selling opportunities are there, but be careful of the rapidly changing headwinds of this sector and a high level of trader greed keeping the prices artificially high. Fundamentals in this industry have huge revenues that are only beginning to be realized, so a lot of investors are capitalizing on long term growth outlooks with strong cash flow support even with insane cash expenditures in building new logistics operations across highly regulated international boundaries.
CRON keeps posting winning gains, but I was watching a falling volume and falling price strength. RSI has ridding almost up to 90, so I've been careful to watch any downward crossings through 60 and that got hit today. The MACD is falling with the histogram increasing with a downward divergence. Directional movement shows a declining upward trend with falling ADX that's still above 40 indicating a stronger long term uptrend, falling +DI indicating the short term uptrend rapidly losing steam, and rising -DI showing that we're beginning to see short term lows. Today's downward gap may take a while to fill back up, and I'm looking at 21.25 and 19.75 as short term resistance and support levels. A downward breakout will further support at 18.50, but it could go back down as far at 16.00 if investors get frightened and retreat back into the sunny S&P500 pastures again.
I'm not comfortable shorting this sector due to the over abundance of optimism and high hopes for the pot stocks, but I did exit my long position on Friday at a stop of 22.25 for a tidy end of week profit. If the bulls win out this week and the price closes above 21.25 for atleast two consecutive days, expect the short term to meet additional resistance at 23.25 being the rounded highest end of day price which was only reached at the beginning of this month. Short interest is rising that indicates an increasing pessimism, so treat short term rallies as short squeezes and be ready to exit quickly with your profits if you intend to keep them.
CRON keeps posting winning gains, but I was watching a falling volume and falling price strength. RSI has ridding almost up to 90, so I've been careful to watch any downward crossings through 60 and that got hit today. The MACD is falling with the histogram increasing with a downward divergence. Directional movement shows a declining upward trend with falling ADX that's still above 40 indicating a stronger long term uptrend, falling +DI indicating the short term uptrend rapidly losing steam, and rising -DI showing that we're beginning to see short term lows. Today's downward gap may take a while to fill back up, and I'm looking at 21.25 and 19.75 as short term resistance and support levels. A downward breakout will further support at 18.50, but it could go back down as far at 16.00 if investors get frightened and retreat back into the sunny S&P500 pastures again.
I'm not comfortable shorting this sector due to the over abundance of optimism and high hopes for the pot stocks, but I did exit my long position on Friday at a stop of 22.25 for a tidy end of week profit. If the bulls win out this week and the price closes above 21.25 for atleast two consecutive days, expect the short term to meet additional resistance at 23.25 being the rounded highest end of day price which was only reached at the beginning of this month. Short interest is rising that indicates an increasing pessimism, so treat short term rallies as short squeezes and be ready to exit quickly with your profits if you intend to keep them.
Trade closed: stop reached
It's bounced and I've gone long. This sector is fun to trade because it's on and off like a game of simon says.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.