I wrote a report for Cannabis Stock Trades – sharing five reasons this is a good time to buy cannabis stocks. Enjoy!
For the last few years, the cannabis sector has experienced extended periods of strength followed by large pullbacks that lasted on average three to six months. During this period, buying cannabis stocks on a pullback has been a highly effective strategy.
Today, investors want to know if this a good time to buy cannabis stocks…
The short answer is yes.
I see five powerful catalysts that tell me this is a great time to buy cannabis stocks.
#1 – Cannabis Stocks Look Bullish On the Chart
The U.S. cannabis sector is trading 25% below the 52-week high. Buying on dips has historically been an effective strategy for investing in cannabis stocks. When stocks pull back and consolidate, they normally set up for a rapid rise higher.
In this case, cannabis stocks appear to be setting a long-term bottom and setting up for another big run.
The Advisor Shares Pure US Cannabis ETF (MSOS) is an index of U.S. cannabis stocks.
- MSOS has developed a key level of support between $38 and $40 which is also the 6-month low. This area has been tested a number of times and it has held. That is usually a good place to rebound.
- MSOS has filled the price gap that happened from January 5 to January 6. Some chart analysts say “price gaps always get filled.” If that’s true, then this is another bullish signal.
- MSOS has broken the downtrend that lasted from early February to late April.
In the meantime, while cannabis stocks are trading 25% below the 52-week high, the industry is ready to benefit from a string of powerful catalysts.
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Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.