NFTRH+; a ‘Best of Breed’ Stock Hits a Buy Area

You may or may not be interested in the bombed out Pot sector, but CWBHF (CWEB.TO) is a related company (CBD/Hemp products) that has had the best chart of the bunch and a favorable (as in “best of breed”) fundamental view from my friend Fred Lacey. Hence, as it dropped to the SMA 200 I added more shares and thought that rather than having only a simple note in the Trade Log, I’d show the chart here for anyone who may be interested (and my apologies for getting to it so late, as it’s bounced a bit since).

The technical point of interest is the series of higher highs and higher lows on the daily chart. I held all of my shares on the previous spike, watching nice paper profits turn to paper losses. I also watched for a gap fill and tap of the 200 day moving average at 15. I added shares the day before the actual hit of the SMA 200. Gap filled, and SMA 200 tested.

Now, it’s not usually that easy. The stock could grind around and retest the SMA 200, the broader stock market could get croaked in September. But as long as CWBHF does not make a lower low to July the intermediate uptrend is intact. FYI. If all goes well and stays logical to this trend it could make a new high in Q4 2019. If not, well, it’s the stock market. There are winners and there are losers. This one would lose its uptrend if it were to take out the July low just below 14.

charlottes web, cwbhf

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.