XLY stays in regression channel
Updated
Ever since the year's high water mark at $1.08 I had been searching for re-entry at or near the double bottom of $0.70. The recent beating the cannabis sector took provided a fantastic opportunity to grab XLY at bargain prices; as low as 66 cents! The current reversal does not have me sold as a solid trend change as you can see we are still well within the regression trend channel. There has been no news and volume has been lacking, I think we are looking at another opportunity to add to a position without spending any extra capital.
Let's not forget that there are several million warrants out at 85 cents up in 2020, even if you don't believe in this company the opportunity to trade wisely within the channel should be hard to resist. Personally, I love the XLY business model and am long on this one but you better believe I am taking advantage of these chances to add to my upside.
The danger in trying to take advantage of these small runs is we are now just over a month away from when the announcements will come to determine whether or not XLY's two wholly owned subsidiaries are granted licenses to participate in Canada's concentrate/edibles market. If this is in fact a run in that direction, offing half my position will feel less than fantastic but I am protected by the length of the run to come (we are over a month out).
Given the look of the MACD and RSI on the current daily chart, there is no way I believe that a run all the way up to announcement day is in the cards. If it is, there will certainly be another buying opportunity between now and then when the RSI hits the ceiling and bounces off.
Let's not forget that there are several million warrants out at 85 cents up in 2020, even if you don't believe in this company the opportunity to trade wisely within the channel should be hard to resist. Personally, I love the XLY business model and am long on this one but you better believe I am taking advantage of these chances to add to my upside.
The danger in trying to take advantage of these small runs is we are now just over a month away from when the announcements will come to determine whether or not XLY's two wholly owned subsidiaries are granted licenses to participate in Canada's concentrate/edibles market. If this is in fact a run in that direction, offing half my position will feel less than fantastic but I am protected by the length of the run to come (we are over a month out).
Given the look of the MACD and RSI on the current daily chart, there is no way I believe that a run all the way up to announcement day is in the cards. If it is, there will certainly be another buying opportunity between now and then when the RSI hits the ceiling and bounces off.
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Sold $0.77Bought $0.65
Sold $0.68 (order at $0.74 didn't fill and it dropped fast)
Looking for rebuy... So far this channel has been key...
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Holy Moly! I hope someone else out there is playing along!
This has been a great ride so far, and on a stock that is trending down!
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Trade closed manually
Amazing work in the channel for weeks. Several 10% scrapes before this stock broke the channel on Jan 17, I hope this one was as good for you as it was for me. Almost completely out of this position but I am long on my principal investment because I not so secretly actually love this company's setup.
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