Update Hello, here is a little update on the economic situation of the marijuana sector and the global one. For those who fear Matica will go even lower, it’s possible. The reasons are that the monthly candle of January shows an inverted Hammer and this is a strong indication of a reversal trend. The positive point is that several indicators, like the STOCH RSI is in oversold from the 5 minutes to the weekly, but the monthly still have place to the continuation of this bearish trend. In addition, if the people who bought Matica in the 25-30 cents do not panic, then I think Matica will continue to trade between 25-45 cents for the next few months at a minimum. This can change in the case of a License that could bring Matica back between 50-80 cents. The last week has just cleaned up the small investors who do not know how to invest and who panicked in this moment of economic uncertainty. The question that must be asked before selling or buying is knowing what is the worth of what you are buying or selling(Don’t rush blind in a market) . Several people a week ago said that Matica was worth 1$, but you guys are the ones who sold in panic. Also I think Matica was over evaluated a week ago, because of the various factors such as the lack of license and especially the lack of communication from the management (At least he posted pictures to bring Matica from 0.26 to 32 cents during the session of Friday). The best is yet to come, but you must have concrete to be able to have a bull trend with a stable continuation in the future. My first long term target is 1$(I will reduce 50 percent of my position in Matica)
To give an idea of the impact of the panic across the marijuana sector, the MARIJUANA INDEX has lost nearly 361 points since its highest peak on January 8, and now stands at 671.47 points. The index is not far from where it was before the December green rush. Nevertheless, I think that there should still be a loss of about 50-100 points from the current level to then have stable growth, because the legalization will not take place until almost 6 months and so many companies have no revenues. So, for a healthy continuation I think the January 8th level should be the one we should be at a month from legalization. Also, many companies in marijuana, I would say even all have been brought to levels far too high for the present value market.
The TSX is currently on a support, while the TSX venture still has room for a drop before reaching a major support. Alena's fears, internal fighting in the United States over marijuana will continue to put pressure on the sector. Also because of the economic policy of the Fed, the pressure will continue to test the nerves of investors. It should not be forgotten that yes, there was a red week, but the main indices like the Dow Jones has gained nearly 6000 points since January 1, 2017, its highest peak was in January 29( 26 672 points) and now it is at 25 428. Personally, to have a healthy correction to allow a continuation to higher up the Dow should continue to lose another 1,000 points over the next few weeks (I do not think there will be a fall so brutal again, but gradually). Currently I do not think we are in a bearish market, but only in an expected correction and that should return to normal if the US economy continues to have good economic results like the nonfarm payroll which allowed a gain in the us dollar index Friday.
In general, I hope that all those who lost money in this panic and who are new investors will learn for the future because you are the people who have allowed this great volatility and you helped the true investors and the big intuitions to tripled, quadrupled and even tenfold their investments in a month. So, I want to say that all those who sold in this panic should just not invest, because believe me soon a new top will be reached, but these new highs will have news and revenues while those of December and January was largely pure speculation.
Well done to those who have not panicked, the game has just started