CURLF Holds Key Weekly Support as Relative Strength Turns Up

 

Above is a weekly chart of CURLF, and the first thing I want to point out is that price appears to be holding moving average support. This isn’t some random moving average that I pulled out of a hat. It’s one I’ve been using for a long time because it has done a remarkably good job of defining both support and resistance over the past two years. Specifically, this is the 15-week simple moving average of the lows, and it continues to earn its keep.

If you study the chart closely, you’ll notice how often price has reacted to this average almost to the penny. When CURLF is above it, pullbacks into the average tend to attract buyers. When price is below it, rallies often stall right at that same level. That kind of consistency is significant to me because it tells me the market is paying attention to it, and when the market pays attention, I want to be paying attention too.

Last week was another good example. CURLF pulled back and tagged this 15-week moving average, but instead of breaking down, it held. We closed the week in positive territory and left behind a small bottoming tail. That tail tells me buyers stepped in at support and defended it. In a weak stock, that level would have given way. Here, it didn’t.

In the lower pane, you can see the relative strength line of CURLF versus MSOS. After a period of drifting lower, that ratio line now appears to be turning back up. Relative strength turning higher while price holds support is something I always want to see, as it suggests CURLF may be starting to outperform the broader cannabis space again.

I’ve been long CURLF for many months and have been content to sit through the consolidation. At this point, I’m not looking to add blindly. My plan is to let price confirm. On the daily chart, a move above 2.82 would take out the most recent pivot high and confirm a small double bottom that held support near 2.40. If price can clear that level, I’ll look to add to my position.

For now, the combination of moving average support and improving relative strength keeps CURLF firmly on my radar.

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