How HIGH Can It Fly? Tilray And Hashish ETF (MJ) Put together To Rally 25% Extra To The Upside
Over the previous few weeks, a novel alternative continues to unfold within the Hashish & Marijuana sector. I highlighted this close to the tip of Could 2021 with a analysis article displaying how a a number of upside value wave setup could begin to unfold after a latest momentum base/backside setup throughout numerous hashish/marijuana sector symbols. The confluence of value patterns throughout plenty of hashish sector shares suggests a much bigger value pattern could also be about to setup. My crew and I consider this new momentum base/backside could immediate a powerful upside value pattern all through the tip of 2021 and should immediate a continuation of this pattern into 2022.
At the moment, I’m revisiting these identical charts/symbols to see how far issues have progresses since our Could 31, 2021 analysis put up. Let’s get began with the charts.
MJ Nonetheless Setup For A +14% Rally To Ranges Close to $24.50 (Or Greater)
This Weekly MJ chart reveals the deep momentum base/backside close to $19.90 with average upside assist above $20 to $21. Utilizing a Fibonacci 100% Measured Transfer method, we will establish upside targets close to $22.40 and $24.50. Over the previous two weeks, MJ truly reached the $22.40 goal with latest highs. But, value closed the week decrease, close to $21.59.
I’m additionally seeing sturdy buying and selling quantity as this new upside value pattern extends larger. This elevated quantity is an efficient indication that the upside value pattern is beginning to construct momentum as merchants accumulate shares in anticipation of the bullish value rally part.
My crew and I nonetheless consider the upside potential within the Hashish/Marijuana sector is comparatively sturdy. We consider the latest momentum base that setup throughout quite a few Hashish sector shares is presenting a really clear alternative for merchants to place trades for the pending multi-wave upside value tendencies. After the primary Fibonacci 100% Measured Transfer targets are reached, a quick pause in value needs to be anticipated, then one other upside value pattern ought to immediate a fair larger value advance. This subsequent transfer will probably conform for the present rally try as one other Fibonacci 100% Measured Transfer to the upside.
Tilray Inching Greater – Nonetheless Displaying A Potential For A +35% Advance
Similar to the MJ Weekly chart setup, this Weekly TLRY chart reveals a implausible momentum advance after a average value pullback from latest highs. Though latest highs have touched our first Fibonacci goal stage, close to $21.67, there’s nonetheless ample alternative for a transfer to the second goal stage close to $26.70.
We’re seeing sturdy accumulation within the latest buying and selling quantity indicated by the sequence of GREEN candles – suggesting the upside value pattern is beginning to construct actual momentum. We consider the following transfer larger will goal the $23 to $24 stage – which is able to immediate an in depth above the primary goal stage and setup TLRY on a stronger advance in direction of the second goal stage.
From the present value shut, the second goal stage, close to $26.70, represents a stable +35% alternative for merchants to revenue from this preliminary wave larger.
GRYN Makes A Huge Transfer – Nonetheless Displaying Alternatives For One other +22% Advance
In our first analysis article about this distinctive setup within the Hashish/Marijuana sector, we consists of GRYN as a possible candidate for an explosive upside pattern. GRYN shouldn’t be some of the closely traded symbols on this sector, but we really feel it’s uniquely positioned as a result of it has US FDA approval for its Hemp-based CBD rising and extraction processes. This US FDA approval means GRYN can produce and promote into virtually any medical, shopper, beverage, consumable or different business as an FDA Authorised provider.
Not too long ago, we noticed a giant upside in GRYN, rallying over 32% since we first printed our Could 31 analysis article. The subsequent transfer larger ought to goal ranges above $2.21 and setup a brand new vary for the following Fibonacci 100% Measured Transfer larger. If GRYN rallies to a excessive close to $2.50 on this present pattern, then the following Measured Transfer upside targets might be $2.79 to $3.45 if the $1.65 to $1.70 value stage holds as assist. These approximate (estimated) upside targets signify one other +60% to +98% rally part for GRYN.
General, we consider the Hashish/Marijuana/Various Medication sector has moved away from the draw back value pattern that has dominated this sector over the previous 2 to three+ years. Now, after the Reddit group focused this sector late in 2020, we’re seeing renewed focus by merchants into this sector. As soon as the momentum strikes previous average accumulation and into breakout trending, we might even see one other massive explosive upside pattern in plenty of Hashish sector shares.
The one factor that would deflate this pattern is that if we begin to see a broad US/International market value correction. If one thing like a average 11% (or better) US/International market downtrend units up, then we’ll probably see these Hashish/Marijuana sector shares try to maneuver decrease as properly – making an attempt to reset/retest the latest momentum base ranges. This is able to current a really attention-grabbing alternative for merchants to get into positions as these base ranges setup and because the accumulation begins to construct once more.
Need to understand how our BAN technique is rating the Hashish/Marijuana sector (and different sectors) for buying and selling alternatives to establish the very best alternatives for future earnings? Please take a minute to study my BAN Dealer Professional e-newsletter service and the way it may help you establish and commerce higher sector setups. My crew and I’ve constructed this technique to assist us establish the strongest and finest commerce setups in any market sector. Day-after-day, we ship these setups to our subscribers together with the BAN Dealer Professional system trades. You owe it to your self to see how easy it’s to commerce 30% to 40% of the time to generate unimaginable outcomes.
Have an amazing Monday!
For a take a look at all of right this moment’s financial occasions, take a look at our financial calendar.
Chief Market Strategist