I'm no technical analysis expert by any means, but CannaRoyalty's price chart sure looks strong to me at the moment.
I've been swing trading some of these pot stocks since only early last month, but as I was coming up to speed on this sector one thing that struck me as I flipped through the price charts of many MJ companies is how similar they were. They all started rocketing on August 15...it's like a bell went off opening the gates and they were all off to the races. Of course, that bell was the Constellation-Canopy announcement. Many of these pot stocks doubled and tripled in just 3 or 4 weeks. But then they finally leveled off in early to mid-September and for the last month or so most of them have been fairly flat and trading in a range...which is great for swing trading if you're looking to nail down some quick 20-25% gains by selling into strength after a few days to a couple weeks and don't get too greedy.
But now it kinda looks to me like many of them are starting to break down and my hunch is that we might be entering a downtrend that could last for several months now that the hype of Legalization Day has finally come and gone. But as of right now at least CannaRoyalty looks like it could possibly buck this trend and is breaking to the upside. Hope so anyway, because we just took a small position in them earlier this week.
Funny thing about price charts, though...many of them look terrific...right up until the time they don't. If I'm right it's gonna be mighty tough to make much money on most of these pot stocks in the foreseeable future unless you're a shorter, which I'm not. But there are always exceptions to the rule...hoping CNNRF is one of 'em. They certainly were yesterday, at least.
AI
