In our Previous Analysis we covered mainstream Marijuana Stocks. Next we move into the OTC Marijuana Stocks section and I cannot overemphasise the risks involved. Regulation is light, fraud more likely and total losses possible, although get one right and the returns can be vast as long as you are nimble and follow the rules of the studies. As they are OTC Marijuana stocks there is no comment on what or how they do their business.
First up is Easton Pharmaceuticals (EAPH). This exploded into life last year and has seen a healthily rise in volume since that time. What is interesting is the recent price action which saw price holds the monthly Energy level at 0.025 perfectly. Since then is has already rallied but the point where you are wrong is clear, with a target of at least 0.6 which is 50% above the current value.
OWC Pharmaceutical (OWCP) is a classic example of a pump and dump which highlights how nimble you need to be trading these OTC Marijuana Stocks. Price exploded at the beginning of the year and is in the process of giving all of those gains back. It can still fall further as support remains at the breakout points at 0.21 and 0.06 so it will need to stabilize at either level to garner some interest.
Mcig Inc (MCIG) rallied 1000% percent in the recent move but has been drifting lower for most of the year. It is now approaching major support at 0.1833 and should be monitored if it gets to that point. The breakout last year was a classic combination of flat Energy and Expansion with a similar set up in Time Area. This what allows for explosive moves.
Finally we look at Hemp Inc (HEMP). This stock highlights how important it is to observe and obey the rules. In the past few weeks it broke a key support (which is circled) with ease. It popped back up but with its resolve weakened it has started to drift once more. There is no reason to consider it until it slides down further to 0.0007 from the current value of 0.03 which represents a drop of 100’s of percent from its current value. The only way to change that dire outlook is if it forms support based on its own momentum by shifting one of the Energy or Expansion levels to a higher support point.
Please note this is general advice from Trading Safaley for all our clients and has been prepared without taking into account your personal objectives, financial situation or needs. If you do wish to consider acting on our information please contact a licensed financial advisor to discuss the appropriateness of this recommendation for your own personal financial circumstances. Please obtain any relevant product disclosure documents before deciding to invest. Trading derivatives, stocks and CFDs can lead to losses greater than your deposit.