2019 has been brutal to the true believers in the Pot sector. More importantly, it has been brutal to those not so true believers, who are the ones that will have sold into this time frame to claim tax losses on a sector that spent the year declining.
We had a previous forward-looking plus update on a few stocks in the sector as tax loss candidates, but I personally focused on the ETF today (bought this afternoon) to keep things simpler in my portfolio. So I own this for the seasonal along with CWBHF, which I continue to doggedly hold at an unrealized loss.
MJ is making the tiniest of hints today in breaking above the EMA 20. May be nothing, but it may also be the end of its brutal selling. Regardless, I added it. Note the positive divergence in daily RSI and MACD at the recent low and STO above 20.
Where might a seasonal bounce in the sector take it? Well, the weekly chart brings resistance into play at 23 and shows that a 38% Fib retrace could take it to 24.50. Personally, I’d be more than happy if it bounces and gets anywhere close to 23.
Pardon the after-hours posting, but maybe that is for the best. These tax loss stocks and sectors are at a loss for a reason. So it’s a seasonal speculation, not an investment and your patient consideration is requested. There’s always (probably) Monday.
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.