MSOS: Basing at Support as We Wait for the Next Catalyst

 

Another week has come to a close, and honestly, there’s nothing especially exciting to report. That in itself probably explains the mood around here. Above is the daily chart of MSOS, and as you can clearly see, we’ve been moving sideways for the past two weeks. No real expansion in range, no decisive breakout, just a slow grind back and forth within a tightening range. It’s not dramatic, but it is information.

The 50-day cycle still suggests that higher prices should begin to emerge in the weeks ahead. That timing window hasn’t changed. If anything, the longer we base here near support, the more meaningful the eventual move could be. The bottom of the channel continues to hold as support, and the gap at 3.76 remains intact. Until that level is decisively broken, the technical structure is still constructive. Price is sitting right where it needs to hold.

It was admittedly a little disappointing that Pam Bondi wasn’t asked about cannabis during her recent appearance. Given how sensitive this space is to any hint of regulatory progress, that omission likely contributed to the lackluster trading we’ve been seeing. There was no new narrative catalyst, no headline spark, and in this sector, silence often translates into drift.

The bigger question still hangs in the air: when will cannabis rescheduling finally be finalized? At this point, trying to predict the timing feels like a fool’s game. Everyone has been wrong about it, myself included. Rather than guessing when the next update will hit the tape, I’m choosing to focus strictly on the technical signals in front of me. The chart doesn’t care about my opinions or anyone else’s timeline. It simply reflects supply and demand.

Right now, we are sitting at key support. Time cycles are pointing higher. Seasonals are also favorable. Historically, January and February have been strong months for cannabis stocks. So far, those seasonals haven’t really exerted their influence this year, but that doesn’t mean they won’t. Sometimes the bias kicks in late. If we’re going to see that bullish tilt, the next couple of weeks would be the window for it to show up.

I won’t sugarcoat it, this has been frustrating. I’ve had capital tied up in this space since last summer, and we’ve essentially been meandering. Not only that, but we’ve given back some substantial open profits along the way. That’s part of trading cycles, but it doesn’t make it any less irritating.

Still, when I strip away the emotion and just look at the chart, the reward-to-risk ratio at these levels is favorable. We’re sitting on defined support. If it fails, I know where I’m wrong. If it holds and the cycle turns up as expected, the upside could be meaningful.

For now, patience remains the trade. Let’s see what next week brings.

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