RISK/REWARD IS JUST NOT THERE. FULL RETRACEMENT??Sorry longs, you just won't like this.
Pull up a 6 month chart. If you look at the charts, the "Biden/Dems might win" rally started right at the beginning of October. At that time, the price was barely $20.00. Now, that level might be a bit of an anomoly due to the pandemic. If you go back a little further, there's a fairly consitent line of support/resistance at about $24.00
So then the Biden rally started, and all the hype was that LEGALIZATION was just around the corner. Becuase the election takes time, that rally could hold, and it did. And then Biden won, which furthered the rally. And then the legalization blue sky was all but a given...and the rally continued again, up to about the $44.00 level.
Yes, there was a Reddit rally after that, which is all but irrelevent to the overall chart. Fast up, fast down. Nothing.
But then, reality now is setting in. The long Biden/legalization rally is NOT going to happen any time soon, and at best, they are only talking decriminalization. And the difference between decriminalizaiton and legalization is ALL the difference in the world, as we all know. At best, decriminalization, if and when it happens, can be viewed as another step towards Legalization, but also best, the Legalization nirvana is now still years away.
So with that, the reality of the of the situation is there. The only question is whether you are willing enough to see it for what it is. The hot air of the Biden/Dem/Legalization rally is now over, and all that is left is for the air to come out of that tire.
So the next question is "how low" to correct this Legalization hot air. Personally, I wouldn't be at all suprised to see the stock return to the $24.00 level. There will be ups and downs along the way, but it will be a painful decline all the same I think.
Now, if you're holding this stock for 5 years, and don't care, well good for you. I do think Legalization is in the cards somwhere a few years from now. But as I've said, we're here to make money, and dead money (or worse) is not what I would be interested in, ever. The market is now speaking clearly on WEED. The only question is, are you listening?