MSOS Near a Decision Point as Cycles, Support, and Catalysts Align

 

Another week has come to an end, so I want to take a step back and update everything from a technical perspective and talk about what I’m watching as we head into next week. There are moments in the market where multiple factors start lining up at the same time, and MSOS is beginning to feel like one of those moments.

Above is the daily chart of MSOS with the 50-day cycle overlaid. As you can see, we are right in the heart of the time window where I would expect a cycle low to form and a rally to begin. Cycles don’t give you an exact day or price, but they do narrow the window dramatically, and that’s exactly where we are now. This is the same framework I’ve used many times before, and when it lines up with price, it gets my attention.

From a price standpoint, MSOS is sitting at a very interesting level. We are down at the bottom of a clearly defined channel, which by itself is notable. But it doesn’t stop there. That area also coincides with the open gap around 3.76 as well as the 200-day moving average. When you have a channel low, a gap, and the 200-day all clustering together, that’s what I consider a real confluence of support. These are the areas where markets often make decisions, and right now the odds favor stabilization and a turn higher rather than a clean breakdown.

Adding to the technical setup is a potential fundamental catalyst next week. Pam Bondi is scheduled to appear before a key House committee, and advocates are hopeful that lawmakers will press her for an update on the Justice Department’s progress in carrying out President Trump’s executive order to finalize the federal marijuana rescheduling process. Whether this turns into anything concrete remains to be seen, but markets often move on expectations and headlines. This could very well be the spark that ignites the next rally, especially with the technicals already coiled up the way they are.

Looking beyond MSOS, there are several individual names worth mentioning. TLRY has turned back up and is showing signs that support is holding. I trimmed some shares on Thursday, but I’m still holding roughly 65% of my original position. If I see some follow through on Monday, I’m very open to adding those shares back. The structure looks constructive, and I want to stay flexible.

CURLF, CRLBF, GTBIF, CRON, and TCNNF are all holding their 200-day moving averages, which is encouraging. In particular, I really like what CURLF is doing. The stock is tightly consolidating right on its 200-day, and that kind of tight action after a decline often precedes a meaningful move. The reward to risk ratio is favorable here so I added a little more CURLF today, the risk is well-defined and the setup makes sense within the broader group.

Overall, I’m heading into next week with cautious optimism. The cycles are lining up, support is clearly defined, and we may have a catalyst on deck. Now it’s about letting the market confirm. Everyone have a great weekend and thanks for taking the time to stop by, its appreciated.

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