MSOS Coils as January Catalyst Window Narrows

 Another week is officially in the books, and overall it was a relatively quiet one. Sometimes those are the weeks that test patience the most. When I step back and look at the bigger picture, though, I’m reminded why it’s important to stay focused on structure and context rather than day to day noise.

If you look at the 60-minute chart of MSOS on the left, it’s pretty clear that price has been moving within a defined rising channel for the past three weeks. Right now, we’re sitting near the bottom of that channel. From a technical standpoint, that’s an area where I want to be paying close attention, not because I’m predicting an immediate move, but because risk and reward are starting to line up more favorably if we do see a turn higher.

Overlay that technical setup with the potential fundamental catalyst, and things get interesting. President Trump has publicly stated that he wants Pam Bondi to finalize rescheduling by the end of January. When you actually count it out, that leaves us with just nine more trading days left in the month. That’s not a lot of time. Whether it happens or not, the key takeaway for me is that this catalyst could drop at any point, and the market rarely gives you much warning when that happens.

Looking at the weekly chart on the right, another detail stands out. This was the fifth consecutive weekly close, all within about fifteen cents of each other. That kind of tight clustering usually doesn’t last forever. As I mentioned last week, I’ve been expecting an increase in range expansion. We didn’t get it this past week, which tells me the pressure is still building. The longer price coils, the more important it is to stay prepared rather than complacent.

On a positive note, we did make a higher high and a higher low on the weekly chart. That’s constructive price action, even if it doesn’t feel exciting in real time. For now, my focus is on staying ready. A breakout move could come any day now, and I want to be positioned mentally and strategically when it does.

For more analysis and market insights, visit my homepage