MJ Marijuana ETF 2-Hour Chart; Oversold; Falling Wedge; Positive Divergence

Keystone likes the set-up with the pot stocks for the long side and is currently holding MJ, TLRY and ACB long. The next few days will be interesting since MJ displays positive divergence across all indicators (green lines) in the 2-hour, daily and weekly time frames. If pot stocks are going to rally after their long beating, it should begin now.

The green falling wedge pattern and the overbot stochastics are bullish. Price is extended below the moving average ribbon requiring a mean reversion higher. The bottom band is violated so the middle band at 3.59 and upper band at 3.70 are on the table when/if she bounces.

There are lots of marijuana stocks to smoke, er, play. The pot plays are; TLRY, MJ, CRON, SNDL, ACB, VRNOF, TCNNF, GTBIF, IIPR, SMG, GRWG, CRLBF, GRWG, VFF, OGI, CURLF, CLVR and MAPS. You would have to look at the charts to see if they are set up with possie d and if so, across what time frames so you can plan a potential trade.

Perhaps there is one more positive in this arena, actually two more. Pot stocks are already beaten down hard. They have been rode hard and put away wet. Marijuana plays have been worked-over in the alleyway behind the dumpster and are now lying on the cold cement in garbage juice and an oil spot. If the broad market falls apart, the pot stocks may be hit less since they are already in Hades.

Second, the pot industry in the US is a cash business not involving the banks to a great extent so it is almost insulated from the bank trouble. Folks are going to keep smokin', er, vaping, their pot all day long in recessions or good times. Humorously, people will probably toke more weed in the coming recession, perhaps toking with a trucker out of Philly that is heading west from the Cumberland Gap. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.