Newstrike Brands Ltd NWKRF

Thoughts on the 60 Cent Wall and 200 Day SMA

[quinlash]

Been looking things over this morning and decided to share my thoughts on Level 2.
 
Right now we have a massive wall at .60 with odd lots of ask levels around it.  With the amount of stock manipulation going on in pot stocks I always find myself questioning what I see on Level 2 reports but I doubt the wall is fake considering the ramp up we have had in the last week or so. 
 
It is very possible that this is a number of shareholders who bought in at the low 40’s and looking to score a very respectable 50% gain however it could also be our investor who took out the resistance at .50 in (what appears to be) a single buy.  If this is the case the shareholder would be realizing a 20% gain in a week (no shame in that, seriously). 
 
Here is what I found really interesting… I went back to the charts and noticed that the 200 day Simple Moving Average (SMA) for HIP is actually .66 which can be looked at in a few different ways, depending on your sentiment for the company.  If you believe the company is a good investment the SMA (especially the long-term 200 day SMA) could be seen as the safe level to be on the stock at.  If you are bearish on the stock then it would be seen as a maximum sell target (+/-).
 
Those exiting at .60 may be at risk of not being able to buy back at a level to make their transaction worthwhile, of course the flip side is that we have had a pretty serious run in the last week or so and we have all seen pullbacks occur on the pot stocks… things that make me go hummm…
 
Right now I am undecided on what to do this week.  Day-trading may be a good option but the SMA of .66 concerns me in regards to being able to buy back at a lower price.  Chatter on the board has also been optimistic while we trend up hard under high volumes… again making me think the shares being sold are unlikely to be put back up for sale at a lower price and existing shareholders less likely to be spooked by a pullback and making panic sells (starting to think pot traders are becoming “battle-worn”..lol)
 
Personally I would love to see this stock stabilize around the 200 Day SMA (at a min.) and volumes pull back to the 1 – 1.5 mil per day average, that would indicate to me that shareholder confidence is high, even if we do experience something of a pullback later on.
 
It will be interesting to watch the wall at .60, thinking the odds are that it will be pulled (at least in part) or taken out early this week with a trend back towards the 200 moving average of .65 / .66 / .67 by late January.
 
For the record, I also considered shorter-term SMAs however with the negative sentiment on the markets (overall) combined with the tax season sell-off at the end of the year I think the shorter-term SMAs are too bearish to be considered and that the 200 Day SMA provides better guidance.
 
Just my thoughts… (on Coffee #2 here…) do you own DD, make your plans and be sure you consider all the possible outcomes of any buy or sell you may be considering and for God’s Sake, make sure your investment level is manageable ! 
 
JMHO, GLTA

[quinlash]

Ok.. guess it took me too long to ramble that last post out... just looked at Level 2 again, the wall at 60 cents has been pulled (at least for now).  Not too sure how much I can monitor things today but I will try and post Level 2 as things develop..

[rodage1]

thanks quinlash go hip go