Above is a daily chart of VFF, and in the lower pane is the MSOS ETF, which tracks the broader U.S. cannabis sector. What immediately stands out is the clear divergence between the two. While MSOS continues to grind lower and is printing fresh lower lows, VFF is doing the opposite, it’s forming a significantly higher low. This type of price behavior is a textbook example of relative strength.
Relative strength doesn’t necessarily mean a stock is exploding higher while its sector runs flat. More often it shows up exactly like this, when the sector is under pressure, yet one name refuses to break down. Investors and traders watch for these moments because they often signal accumulation beneath the surface. When a stock holds firm while its peers sell off, it tells you that buyers are quietly stepping in, supporting price at higher levels and absorbing weakness in the broader group.
For VFF, this higher low is especially notable given the persistent selling pressure across cannabis names. The stock’s ability to stay buoyant suggests it may be positioning itself as a leader within the sector. The next key level to watch is the $4.08 resistance area. A decisive breakout above that price could confirm the relative strength story and potentially trigger the next leg higher.

No comments:
Post a Comment