Well, MSOS finally broke above $5, and that level was a big deal for me. As you know, $5 was my line in the sand when it came to adding to my long position, so seeing price push through it is meaningful. I’ve been waiting patiently for confirmation, and this move checks an important box from both a technical and psychological standpoint.
If you read my last post, I highlighted the back to back weekly inside weeks. In my experience, that type of price compression often acts like a coiled spring. When volatility tightens up that much, it usually resolves with a trending move, not just a quick pop and fade. From what it appears, that move higher may have just begun today. It’s still early, but the structure is encouraging, especially after such a prolonged period of consolidation and frustration over the past 3 weeks.
Another factor worth keeping front and center is seasonality. Cannabis stocks tend to benefit from a strong seasonal tailwind that kicks in around January and often runs into February. That doesn’t guarantee anything, but it does tilt the odds slightly in favor of the bulls, and I always want to be aware of when technicals and seasonals are aligned. Right now, that alignment is hard to ignore.
Volume today picked up modestly, which is a step in the right direction, although I would have liked to see heavier participation to really confirm an igniting move. Still, improving volume alongside a key breakout is better than the alternative. It suggests interest is returning, even if enthusiasm hasn’t fully caught fire yet. Keep in mind institutional ownership has been on the rise.
It also wasn’t just MSOS showing strength. Several other cannabis names broke out of their consolidations, including VRNO, CRLBF, TSNDF, and GTBIF. Seeing multiple names participate adds weight to the move and hints that this could be more than just a one stock story.
From here, I’m content to take it one day at a time. If these bullish influences continue to build and we finally get the catalyst we’ve all been waiting for, this market could have plenty of room to run.
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