Weed tanking..New daily, weekly, monthly low today, and so the decent into the maelstrom contines. Those versed in the finer points of stock trading call this a "falling knife." Why? Try to catch a falling knife, which is like trying to buy a stock as it descends to the bottom, and then trades in a range.
DO NOT BUY this stock at this time, because there is no indication that Weed has bottomed.
There is a major support at $19.4..., which was the price Oct..2020.
Essentially, all pot stocks are specualtive purchases until they show profitability.
If you purchased Weed last OCTober 2020, by doing the
the "bag and hold" strategy, you'd have lost all your profits.
You don't hold and go long on a specualtive stock.
You wait for an uptrend on the daily, weekly, then buy in with a stop loss, and the chart will show a higher high and higher low every month.
What you are seeing now is a lower low and lower high for each of the past 7 months---just as their was a "blow of top" ( long wick up, drop to the body,) then lower low
Everyone on this board, you must look at a chart every day, ideally the candlestick chart for the daily, then weekly , then monthly, and ask yourself the following:
1. Is the chart on an uptrend?
2. Range---sideways (stocks trade in a range 80% of the time )
3, Is the stock in a downtrend?
Basic stuff: When looking at a chart for weed, I can see a monthy (7 months) , weekly, daily downtrend.
So, unless you are shorting Weed, you never buy and hold a stock in a downtrend because you will likely become a "bag holder" , someone with sickening loses.
Here is what will likely happen to Weed: It will bottom at $20 or lower then trade in a range.
One last point. Let's check one basic fundamental--/EPS... Weed has an EPS of (-$4..,,), so the stock is not even close to being profitable.
But retailers knowing "shite" about basic fundamental analysis, such as Eearnings Per Share, reading a chart, and the essential technical indicator called a moving average, just buy and post "FOMO" nonsense or the latest wishful thinking, which is also nonsense and naive understanding.
Where is the bottom??? I say $20, and lower.
And I have been predicting this since the price was at $29..,
I am still all cash!!