We've already blown past the fib retracement golden ratio of 65%, and our next target is 0.786. I don't have a position in this yet, but when we confirm a reversal, I'm going to take a very large position.
SHORT TERM: Our next target is $21.69, and that correlates with another 15% drop in the HMMJ, which is def. going to happen to fill these gaps:
Not only does WEED have to fill those gaps, but so does CRONOS (which makes up the same percent of the HMMJ holding). You can see the gaps yet to be filled at $5.75 (around 30% down from where we're at now):
POTENTIAL YOLO SCENARIO: There's a gap to fill from $14 to 12.50, which is terrifying, as that's another 50% away from where we're at right now. However, considering the HMMJ sector could continue to fall to fill these gaps, I see it potentially happening.
HOW TO TRADE IT: Ladder in your buys. I'm going to put my buy order at around 80% level of the gap-fill, and play the bounce back up. Then, I'll go on shorter timeframes and make sure it doesn't reverse. Regardless, even if you're stopped out on the bounce, you're still making 5%. My stop will be 5-6% below the very bottom of the gap.
PS - Fun fact: HMMJ is comprised of the following:
CRONOS GROUP INC . 10.59%
CANOPY GROWTH CORP . 10.59%
GW PHARMACEUTICALS PLC . 9.8%
AURORA CANNABIS INC . 9.21%
APHRIA INC . 8.14%
TILRAY INC . 8.01%
SCOTTS MIRACLE-GRO CO/THE . 6.26%
CHARLOTTES WEB HOLDINGS INC . 6.04%
HEXO CORP . 3.16%
ORGANIGRAM HOLDINGS INC . 2.9%
Here's a fun call I did for HMMJ:
SHORT TERM: Our next target is $21.69, and that correlates with another 15% drop in the HMMJ, which is def. going to happen to fill these gaps:
Not only does WEED have to fill those gaps, but so does CRONOS (which makes up the same percent of the HMMJ holding). You can see the gaps yet to be filled at $5.75 (around 30% down from where we're at now):
POTENTIAL YOLO SCENARIO: There's a gap to fill from $14 to 12.50, which is terrifying, as that's another 50% away from where we're at right now. However, considering the HMMJ sector could continue to fall to fill these gaps, I see it potentially happening.
HOW TO TRADE IT: Ladder in your buys. I'm going to put my buy order at around 80% level of the gap-fill, and play the bounce back up. Then, I'll go on shorter timeframes and make sure it doesn't reverse. Regardless, even if you're stopped out on the bounce, you're still making 5%. My stop will be 5-6% below the very bottom of the gap.
PS - Fun fact: HMMJ is comprised of the following:
CRONOS GROUP INC . 10.59%
CANOPY GROWTH CORP . 10.59%
GW PHARMACEUTICALS PLC . 9.8%
AURORA CANNABIS INC . 9.21%
APHRIA INC . 8.14%
TILRAY INC . 8.01%
SCOTTS MIRACLE-GRO CO/THE . 6.26%
CHARLOTTES WEB HOLDINGS INC . 6.04%
HEXO CORP . 3.16%
ORGANIGRAM HOLDINGS INC . 2.9%
Here's a fun call I did for HMMJ:
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.