Just a quick note for those looking to get in on cannabis ETF, ETFMG Alternative Harvest (MJ). The weekly chart above shows that MJ bounced off it’s 8-month low at 23.18. As you can see, the Momentum indicator shows a clear divergence between price and momentum (that is, based on its reading–the same can’t be said of the RSI, another momentum indicator, which shows a steady decline).
Of course, further downside is always a possibility, but at that point, there is no historically significant support level to be seen. Volume on the upside seems low (and dwindling), so anyone who jumped in at this “last stand” of a support level might have been a brave soul seeking to take a short-term profit at a near-term level like 29.25, or a long-term investor who saw this level as a bargain price to snag a nice position. Bear in mind that cannabis is still an emerging industry rife with uncertainties. But taking the longer-term perspective, and it goes without saying, there’s no reason to think that it’s an industry about to end.
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