Picon, Lombardi, apostle & other longs re fibs...
Hey I'm still out here and holding a core position. I lurk now b/c I'm too busy w/ work and other stocks I'm looking at. I'm also frustratingly waiting for gift to evolve the double digit contracts. but as apostle accurately imo pointed out, I do think there has been a distribution of shareholders and some heavy long holders have given this stock impressive support considering the sector sell off and the stalling of gift. The charts imo prove it (more in a sec.)
I also feel Mondays news is being overlooked by some in re to its implication.globaldata may be right in re to naked actual rev flow, though I do think its a lowball. But that's not the key. That salient factor is the news points to major distribution leverage phot is gaining in the industry. The most important ques is, not that we landed it, but why did they come to us exclusively?
Seems they know where grow life's branding and distribution leverage is going in the industry. It strongly implies much more is under the surface here in re to how phot is going to gain increasing distribution leverage. Examine luxottica's business model and apply it to the pot industry as a clue. It's going to take patience, but the pieces are coming together.
Re fibs and chart. I added more today b/c today's action revealed some strong signs:
first, as I stated a few weeks ago, phot was due for a pullback. when it went to .79, weeks ago, it went parabolic on the fib pattern. thats a yellow flag for a major pullback and long consolidation at worse & at best a sign the stock is going to go back to support & refill nearterm support levels. I was preparing for this even before the news & is why i took some profits in the .70's. furthermore, organized shorters like Sykes are exploiting what was an over extended sector that is still far enough from 4-20 to profoundly have the trees shook. Bank on this they will soon swoop in next week or thur/fri to start cherry pick buying.
now, in re to today, it certainly points to a stock that's basing. the stock saw very light volume selling and rsi is at a very nice number. pullup a 6 month chart & you will see what i mean on fibs.
fib wise, going back to a starting A point of .18 in early feb. and a B point of .78, we did break .53 wh/ was a 50% pullback, but the key is we have held the 62% fib of .47, only briefly breaching it today. I posted a couple of weeks ago that i thought it would get tested. today it did on light volume. that is very important. if that number can hold it implies we don't get a major breakdown and we also set a fib platform for new highs. If it does break though in the next week, then we have to hope the volume stays low. If so a new base and A point will get formed and we will have to grind our way up more before new highs runs can be set up base wise.I bought today, so I'm leaning on the former.
Also keep in mind that .47 also goes back to the high point of the jan 9 190 million high volume bar. stocks love to retest the tops of those bars if they are healthy or go to the bottom of the bar if they arent. We bounced off the top of that bar and did it on light volume. That is bullish. We also retested the march 25 swing point on lighter volume and closed back above ots lows. Another very bullish sign.
this shows all the signs of health. .47 is only 62% back off the .18 A point. therefore fib healthy. its also the top of the jan 9 bar. Great entry point & sets the table for a new fib pattern that takes you from .97-1.33 on the next run w/o going parabolic. that seems in the cards imo once May wash state legalization mojo kicks in.
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