2 Bull Signals Flashing for Pot
We’re coming off a really bumpy six months for the cannabis industry in general.
With this in mind, I suggest holding off and waiting for the pot environment to bounce back before buying into the next marijuana play.
But this doesn’t mean there isn’t any good news in the industry this week…
Most importantly, we may have finally established pot’s bottom as cannabis stocks jump today.
Cannabis Bull Signal No. 1
A great way to measure the health of pot stocks is by using the ETFMG Alternative Harvest ETF (MJ).
Below we have the 30-day chart for MJ. At a glance, yes, it’s u-g-l-y!
But if we key into the action starting on Oct. 14, we see signs pot may finally be bouncing off its bottom.
Working alongside my friend and technical expert Greg Guenthner, we are tracking two bullish signs right now.
The first is the fact that MJ today achieved what market pundits call a “golden cross.”
This is when the 50-day moving average rises above the 200-day moving average, and it can indicate more upside potential.
Cannabis Bull Signal No. 2
The second bull sign is that off of Oct. 14’s bottom, we’re starting to see MJ notch a series of higher lows day to day.
If we zoom in on this week’s action:
The blue arrow above highlights the small but identifiable beginnings of what could be the start of an uptrend.
Typically, we need more data to confirm there won’t be another breakdown before the uptrend truly manifests itself.
It’s all the more reason why we still want to hold onto our next pot stock move until we can plot a few more data points.
That said, now that we have two bull signs coinciding, I think we have a strong case the worst may finally be over. More on this soon.
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Chief Technology Expert, Technology Profits Daily