MMNFF Trade on Nov 2, 2018 15:59 from Marius: Tradervue User Stock Trades.

US Cannabis Industry Relative Strength Higher Open + Continuation ?

There has been evidence of more relative strength on the US MJ side of trading. MedMen has seen the highest volume and strongest TA indicator(s) along with KSHB and other names (still to look into). Overall market is extremely volatile and there is high headline risk into next week w/ mid-term elections, FOMC, & frequent China vs. US trade settlements/disputes. Positive news is favorable for the market as solid market positioning is better than continuing downside action going into next weeks setup. Going into mid-term elections and FOMC has a high probability of a sell-off & profit taking. Earnings season is coming to a close and there is not much news and or fundamental catalyst expected. Expecting more volatility with unexpected announcements and or changes.

• RVOL 0.6068 and steadily rising but not notable
• ATR 0.6737
• Approaching 61.8% fib level (for continuation + extension) (6.28) from ATH (7.57) to recent bottom (4.19)
• **Additional longer-term fib level analysis and found notable clustered levels at 61.8% and 161.8% level suggesting more important areas of price action.
  
• Notable EOD bull volume and tape readings
• Notable EOW bull volume and close with negligible upper profit taking wick
• 65m HH's & HL's remain in place
• Above intra-day and two-day VWAPs. Intra-day was lost but regained into EOD.
• Possible 65m bull-flag continuation into next week
• Sizing was good into this B trade. No scale-in but relative mid-size.
• Plan is to close or scale-out a gap-up or higher open then reload / scale-in upon confirmation of bullish strength continuation
• If market open is unfavorable and there is no buying pressure on the tape and chart. Will look to exit at pre-determined stop and re-asses current conditions.
• ** Testing and notable anchored VWAP areas of interest from ATH (10/18/18) & from recent bottom (10/29/18). Bullish AVWAP reading. Added additional AVWAP from ~ first day of listing (05/31/18). Price is above all 3 AVWAP's suggesting bullish development.

• Sunday Market Futures opening session show possible 240m bear flag development. Will have to re-asses Monday morning pre-market.

• Closed Trade Review

• Scaled out at the open watching the tape and chart and will look to reload based on market movement and consolidations.

• Noticed offer being bought into the initial pullback but selling pressure appeared higher on chart. Need to improve my tape reading skills so I can see this before the price fades. I had bias on target and upper fib levels.

• Reviewing the tape there was a noticeably large buy pushing price higher into resistances but no follow through. Notable profit taking after this move which was marked in the higher volume and on the tape shortly after.

• First scale out took noticeably longer with a relatively smaller position. Need to note in OTC exchanging MM (market maker) order flow. To keep in mind with volatile movements, spreads, and position sizes.

• Target had been reached and quicker reaction is needed in the future for OTC and smaller cap names.

• Will look very closely how price reacts to the next price levels in the upper 6 dollar ranges due to all the fib levels at 161.8% (noted on chart). Expecting high level of resistance.

• All price action is still in play of this weeks set-up. Mid-term elections Tuesday & FOMC Wednesday / Thursday. This is now suggesting an extremely higher risk play and would like to see price above 161.8% levels and test as support. Then continuation above and after this weeks news and event catalysts.

• Daily candle is starting to form a bearish reversal and higher low may be printing. Again will have to see how intraday consolidation forms and how this weeks events play out.

• Annotated Trade
  

• Relative Strength : MMNFF/SPY (US Market Benchmark) & MMNFF/CGC (Canadian Sector Leader)
  

• ** Anchored VWAP Analysis
  

• ** Longer-term Fibonacci Level Analysis
  

• Last Updated : 2018-11-05 10:50:42