Global X Marijuana Life Sciences (HMLSF)

[PotterBanker]

The 2 converging lines represent lower highs and higher lows. As they converge the idea is that one will win out and the price will break either up or down.

I tend to think of this in terms of trading and the lower highs represent an ever lower price that sellers are willing or able to sell at. And the higher lows represent buyers willing or able to post ever higher support bids.

I would like to think that removing the senate vote doubt from the equation would tend to boost market sentiment and buying volume would then increase on positive speculation of recreational legalization getting done in a reasonable time frame.

Of course I really don't know either way, so I continue to look at the chart, looking for confirmation of a break upward as the convergence squeezes tighter.

In simplest terms, if the market heats up on this news, and volumes increase, the price will most likely go up. So look for increasing volumes with positive price movement as an indicator of it being "real".

It could be the perfect storm with the convergence coinciding with the catalyst of the senate yes vote. But will the market see it that way?

GL