Can $MSOS light the fire? – January 9, 2023
This is Scott with your Chart of the Day. I want to take a look at the AdvisorShares Trust for Cannabis in the US ( NYSEARCA: MSOS ).
MSOS ( NYSEARCA: MSOS ) has been in a significant downtrend for a lot of its life. It started here in 2020, it ran up nicely with the rest of the market, and then gave it all back and then some. It has really been lingering near the lows here, right around the 6.00 and $7.00 range.
You can see this black line I have on the chart, that is the 200-day moving average. And for most of this vehicle’s life, it’s been under the 200-day moving average. But just near the end of 2023, it was finally able to battle against the 200-day, even though it took a few tries.
We are now, as you can see, sitting above the 200-day moving average, but we’re also above all the other moving averages. You can see these lines I have drawn here, a clear downward-sloping trendline of resistance. A clear upward-sloping trendline of support. We broke out of this clear range and today backtested it with a bounce off that 8-day exponential.
I definitely think MSOS ( NYSEARCA: MSOS ) is looking interesting here. If I was to take a position, I would probably want to have a stop right around that $7.00 range. I think a close below 7.00. You probably want to get out of the way of this because that means that this breakout is not really holding and could be just another fake-out.
But I definitely want to bring your attention to some of the US cannabis stocks. I think they could be setting up for maybe a run in 2024. It is definitely one to watch, and we will be watching it over at STOCKMARKETMENTOR.COM.
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