Now with the week closed we can assess the longer term time frames. The weekly candle is now the 5th highest volume week in 3 years of data. High volume at the bottom of a downtrend normally shows capitulation to a reversal. As of today's close we are now trading at a P/S of 7.46 using a trailing twelve month, which I would argue is not accurately depicting the real number since the merger and drastic increase of sales. For example if you look at Q1 of 2019 you will see that they did $9.6 million in revenue you will notice that in Q2 they more than doubled that figure by generating $19.2 million in revenue. If you were to annualize their most recent quarter the P/S would then become 3.08. This is actually conservative and would factor in that the company has zero growth in the next 3 quarters, which is highly unlikely given their track record. Do you know who else has around that P/S ratio? JPMorgan. Actually they have a slightly higher P/S ratio and they have nowhere even close to the growth that this company is experiencing. All while their main area still isn't even open to them just yet (New York). This will happen soon however as even after the governor of New York met is meeting with other governors from other states for a joint effort in legalization. Also the governor of Pennsylvania Tom Wolf now has come out and stated that he wants to legalize recreational marijuana. The northeast is about to open up in a big way soon!
Now lets look at the updated technicals---
Weekly RSI - 23.32
Daily RSI - 21.75
4HR RSI - 21.01
1HR RSI - 25.79
StochasticSlow indicator still showing a buy on the weekly and daily. As you can see we have now become more oversold on all of these longer time frames. Today's volume was the highest of the week and the 8th highest volume day in 3 years worth of data. This weeks volume is the 5th highest in 3 years worth of data. This is extremely high volume, which often indicates capitulation and a reversal.
Trust charts because charts do not lie
