MMJ breakout imminent
Updated
MMJ saw capitulation on 28 Aug marking a reversal to the upside and now a bull flag pattern has formed indicating a possible breakout pending volume confirmation as marked on the chart. With approval of PhytoTech sale to HVT expected later this month plus LABS to list on the TSXV also this month; such announcements should attract some attention (and the required volume).
The sector as a whole (globally) appears to be gaining some momentum given the recreational use of marijuana in Canada is officially to be legalised on Oct. 17 (Canadian Legalization).
The sector as a whole (globally) appears to be gaining some momentum given the recreational use of marijuana in Canada is officially to be legalised on Oct. 17 (Canadian Legalization).
Comment
Couple of updates / things to note from above 1. capitulation occurred 24 Aug, not 28 Aug as written above, and
2. HVT is in fact the symbol for Harvest One on the TSVX
Also worth mentioning, on 12th Sept Harvest One saw a bullish candle at close of 31.65%, which is still unclear as to why i.e. on no news announcements. This is the main reason we see an influx of volume on 13 Sept for MMJ today.
Comment
According to todays announcement"MMJ share price is a 11% discount to this NTA. The catalysts that may reduce or
eliminate this discount in the short term include:
• a sustained improvement in Harvest One’s share price;
• release of details on Harvest One’s national retail strategy in the coming weeks;
• the imminent listing of MediPharm Labs on the TSX Venture Exchange;
• MMJ shareholder approval of the sale of PhytoTech Therapeutics on 28 September;
• legalisation of recreational cannabis in Canada on 17 October; and
• selective divestments from our portfolio to realise returns and provide funds for other investment opportunities.”
Couple of which i had previously highlighted in my original post.
Comment
Target reached as highlighted in RR. Confirmation of uptrend now trading outside of downtrend channel.
Announcements of LABS listing on TSX yet to come where CEO interviewed mentioned 300kg of stock held in vault and revenue expected from the get go once public.
Continue to monitor.
Trade closed: target reached
Trade closed at resistance, target (and some) achieved.
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.