MSOS Setting Up for a Bigger Move After Weekly Inside Bar

 Above is a weekly chart of MSOS, and I want to focus on the inside week that has just formed. Inside bars have always caught my attention because they often show up right before an expansion in volatility. Markets don’t stay quiet forever, and periods of tight consolidation usually lead to a larger, more directional move. That’s exactly why I think this setup deserves our attention right now.

An inside week tells us that neither buyers nor sellers were able to take control. The range tightened, emotions cooled, and energy started to build beneath the surface. At some point, that compressed range gives way, and when it does, the move can be meaningful. In this case, the high of the candle just prior to the inside week comes in at 5.01. For me, that level matters. If we see MSOS trade 5.02 bid, I think that could be the spark that ignites the next move higher.

Adding to the bullish case is the seasonal backdrop. Historically, this time of year tends to be favorable for the cannabis space, and that bullish seasonal could assert itself at any moment. Seasonality alone isn’t enough to take a trade, but when it lines up with a technical pattern like this, it certainly adds weight to the argument.

Of course, nothing is guaranteed. There is always the risk that the broader market rolls over and pulls everything lower, possibly leading MSOS to attempt to fill the gap on the daily chart. That’s a scenario I’m keeping in the back of my mind. 

What really stands out to me is that this compression isn’t just happening on the weekly chart. We also have an inside day on the daily chart, which further reinforces the idea that a move is coming. When multiple timeframes line up like this, it often leads to action sooner rather than later.

Now it becomes a game of patience. I’m watching the range, I’m watching volume and relative strength, and I’m staying focused on that 5.01 level. Let’s see which side shows its hand first and where the volume takes us from here.

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