As I’ve shared here recently, the marijuana sector stocks are setting up for big moves (again).
For example, about a week ago I handed you PYX at $20, and now it’s trading over $27!
Here’s another pot stock with an equally powerful pattern right now.
After rallying from $6 to $25 in about a month last fall, Green Thumb Industries (GTBIF) began a long orderly decline back to $7.40.
While this type of decline may not sound like a good thing, it has created a very bullish pattern for traders looking to get in now.
The bullish pattern as you’ll see on the chart below, is based on the fact that the $7.40 low was the 200-day moving average. This is a widely watched level by institutions, and GTBIF’s strong rally off the 200-day average in 2019 suggests that there is big money moving into this stock.
In addition, GTBIF has spent the last month digesting its strong January rally.
Last week it broke out of this powerful consolidation and set up a flag pattern, which creates the last piece of a very bullish base breakout pattern.
If it moves higher again, a big move up should follow, As as result, the trade is to buy a breakout over the recent $14.85 high, and place a tight stop under the recent flag low. Since the low is close to $13, under $13 would be best.
The big picture pattern here is so bullish that if by chance this stock pulls back instead of breaking out, I’ll also have my eye on buying a dip back down into the $12 level. However, we may not get that opportunity.
Rick Nartarian, Chief Investment Officer
The American Investor Daily