The Weedly Report - June 18th, 2018

Introduction

•In financial markets, there are certain price levels that are more significant than others with regards to the amount of supply and demand that exists at them

•In financial markets, prices are always doing one of three things.  They are either going up, going down, or staying the same.  I use a process and methodology that has been developed over twenty years in order to identify these levels and price trends

•An understanding and awareness of these levels and trends will add Alpha to almost any investment strategy

•I do not utilize many of the traditional Technical Analysis Techniques such as Gann Theory or Elliot Waves and believe they belong in the realm of Bigfoot and UFOs…fun to talk about but hardly credible

•My philosophy and method is based on experience, common sense, and logic.  I spent almost two decades trading illiquid securities and this background gave me the ability to understand how to identify these levels and trends

•Now that they have started to develop trading histories, equities in the Legal Cannabis and Medicinal Marijuana sectors are starting to develop important levels

 

Aphria Inc. – The $13 level has developed importance in APH.  The lows in February were right around it.  Lows are typically more volatile than highs because selling is based on fear while tops are based on hope, and fear is a stronger emotion.  $13 was pretty much the exact high in early and mid-May, and again in early June.  There will probably be resistance there again if it trades higher.  Shorter-term, there has been support around the $11.30 level.

 

Cronos Group Inc. – The $8 and the $5.50 levels have become important in CRON.  $8 was the recent high on June 6th and 7th, and it was also the top in April.  It was also the low in January and the top in February.  The recent lows in April and May have been right around the $5.50 level.

 

Emerald Health Therapeutics Inc. – EMHTF is currently testing support around the $3 level.  This level was an important low in December and the lows in April.  If it breaks it will most likely become a resistance level.

 

GW Pharmaceuticals – GWPH may find some support around the $140 level if it continues to trend over.  There may be support there because it was the top in January and again throughout the second half of April.

 

Horizons Marijuana Life Sciences Index ETF – The $15 level has become important in HMLSF.  It was the top throughout March and the top on June 7th when it became overbought and sold off.

 

Innovative Industrial Properties, Inc. – IIPR is testing support around the $3 level.  If this level breaks it will most likely become a resistance level.  There should be some support here because these levels were the top at yearend and again throughout early May.

 

Medreleaf Corp – LEAF recently ran into resistance around $28 – 29.  These are the same levels that it found resistance around early in the year.

 

Canopy Growth Corporation – The levels around $42 are important for WEED.  They were the top in January and again earlier this month.