Well, it was another red day for the cannabis stocks, and days like this can test both patience and conviction. Above is a daily chart of CURLF, and as you can see, price is now approaching the open gap near the 2.70 level. Gaps often act like magnets, and it’s not surprising to see the stock work its way back toward that area before deciding on its next meaningful move.
What’s encouraging, at least so far, is what’s happening with volume. Over the past two sessions, volume has been declining as we test this potential support zone. To me, that suggests selling pressure may be starting to dry up. When a stock pulls back on lighter volume, it often signals that weak hands are exiting and stronger hands are beginning to take control. This is exactly the type of behavior I want to see if a durable low is going to form.
From here, I’ll be watching closely for signs that CURLF is bottoming. Relative strength is high on my list, if the stock can start to outperform the broader market or its peers even while price is still basing, that’s an important tell. I’ll also be looking for clear price based signals such as a reversal bar, a bullish engulfing pattern, or any decisive rejection of lower prices. Those are the footprints buyers tend to leave behind before a meaningful turn higher.
This pullback is the first real test in what I believe could be the early stages of a new bull market for the group. That belief hasn’t been proven yet, and the market will ultimately decide. For now, patience is key. While CURLF works through this area, other names in the space, such as TLRY which I wrote about yesterday will remain on my close watch list. Sometimes leadership rotates, and being prepared is half the battle.
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