Above is a daily chart of VFF, and as you can see, price has now pushed into the open gap. The full range of that gap extends down to 2.96, so there’s still room for this to continue drifting lower if buyers don’t step in soon. What makes this move a bit disappointing is that just two weeks ago, VFF was the clear standout in the cannabis space. It was showing the strongest relative strength by far, and I had high hopes that we were setting up for a breakout over the 4.08 high. That breakout never came, and the chart has been fading ever since.
What really stands out now is the pattern of five consecutive days of lower highs. It’s very similar to the behavior we saw in MSOS back on November 20th. That same slow grind of lower highs often signals that momentum has shifted, at least temporarily, and that the stock needs more time before any meaningful upside can resume.
For me, this is now a patience trade. I’m watching for the prior day’s high to be taken out before considering a long entry. That would show me that buyers are finally willing to step back in and start exerting some control. Until that happens, there’s no reason to force anything. I’ll step aside, watch how much of this gap gets filled, and wait for price action to show its hand. Sometimes the best move is simply to stay patient.
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