Is it Up in Smoke for Pot Stocks? | ALTERNATIVE HARVEST ($MJ)
🌿 Alternative Harvest is on its way up after an extremely bearish last half of 2019 for pot stocks, but is it up in smoke or down in ashes for MJ? Right now we have MJ rallying off the bottom as darlings of cannabis like Aurora and Tilray push higher. This move in some pot stocks has pushed others up. Some of this is fundamental, with some better than expected earnings and one study that shows that maybe smoking pot helps ward off COVID, while some of this seems to be FOMO. Although pot stocks can really run when they run, the overall bearishness of the trend has us looking to short exhaustion from this rally... even if it is just as a hedge (although we will likely wait until Tuesday's open to execute this since we have a three day weekend).
Resource: www.thestreet.com/in...in-fighting-covid-19
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1. Fractal Trend is showing a downtrend (Maroon bar color) on the 4-hour timeframe. Despite the recent strength in MJ, the trend has been bearish for a while.
2. With this strategy, we are looking for short setups in a downtrend and as such want to enter short on retests of bearish order blocks plotted by Orderblock Mapping (Maroon line color) and/or bearish S/R levels plotted by Directional Bias (Maroon line color).
3. We are looking for a short entry off of the range formed by the R1 bearish order block with a stop placed at the gap and a target of the S1 order block + S/R flip cluster.
4. If that entry doesn't work, we are looking for a short entry off of the major S/R flip at R2 with a stop placed above the R3 order block cluster and a target of S1.
5. Additional notable levels include S2 and S3. Notable here is that a bounce off S1 would create a potential series of higher lows lending to the bull case for MJ, while a break to S2 or S3 would break the short term bullish structure and lend itself to the overall bearish bias the chart already has.
This short setup makes a lot of sense to us given how bearish MJ has been over the past year and are not trying to catch any knives calling a bottom too early. That said, due to recent strength and a three day weekend for the retail markets it makes sense to hold off on opening a short until Tuesday.
Good luck MJ traders!
Resource: www.thestreet.com/in...in-fighting-covid-19
✨ Drop a comment asking for an update, we do NEW setups every day! ✨
Like & Follow to help the Alpha community grow 🎉🎉
---
1. Fractal Trend is showing a downtrend (Maroon bar color) on the 4-hour timeframe. Despite the recent strength in MJ, the trend has been bearish for a while.
2. With this strategy, we are looking for short setups in a downtrend and as such want to enter short on retests of bearish order blocks plotted by Orderblock Mapping (Maroon line color) and/or bearish S/R levels plotted by Directional Bias (Maroon line color).
3. We are looking for a short entry off of the range formed by the R1 bearish order block with a stop placed at the gap and a target of the S1 order block + S/R flip cluster.
4. If that entry doesn't work, we are looking for a short entry off of the major S/R flip at R2 with a stop placed above the R3 order block cluster and a target of S1.
5. Additional notable levels include S2 and S3. Notable here is that a bounce off S1 would create a potential series of higher lows lending to the bull case for MJ, while a break to S2 or S3 would break the short term bullish structure and lend itself to the overall bearish bias the chart already has.
This short setup makes a lot of sense to us given how bearish MJ has been over the past year and are not trying to catch any knives calling a bottom too early. That said, due to recent strength and a three day weekend for the retail markets it makes sense to hold off on opening a short until Tuesday.
Good luck MJ traders!