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Cannabis Stocks Approach Technical Bottom – All Star Charts

John Jannarone

Both small hemp stocks like Isodiol and major cannabis players like Canopy Growth  have rolled over in recent weeks, but there are signs of exhaustion by sellers. That’s according to the latest report from All Star Charts Institutional, which relies on technical analysis.

“Marijuana Stocks have been a mess for a long time and are continuing to trend lower towards the bottom of their 2018-2019 range,” All Star Charts Institutional wrote in a note to clients. “After a 30% decline in four months, we’re beginning to see opportunities for some mean-reversion as many individual stocks made new lows as momentum diverged, then quickly reversed higher. While that may provide some relief in the near-term, the longer-term trend in the ETF and many of its components is sideways at best and down at worst.”

Read the full Top 10 Charts of the Week here. For information about how to subscribe and receive the charts Wednesday, two days before before they publish on IPO Edge, contact All Start Charts Institutional Sales.