OTC Marijuana Stocks – Institutional Technical Analysis

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.

OTC Marijuana stocks

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.

OTC Marijuana Stocks

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.

OTC Marijuana Stocks

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.

OTC Marijuana Stocks

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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.

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4 thoughts on “OTC Marijuana Stocks – Institutional Technical Analysis

  • smart7599@yahoo.com'
    April 22, 2017 at 10:46 am
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    I cannot believe you called Owc a pump and dump! You obviously have no business giving others advise on investing. This company is solid . Let’s explain what pump and dump means. Pump…Usually paid pumpers and paid fake news outlets , in collaboration with the shady company gain excitement by publishing fake news! Dump… Shady company and collaborators dump shares leaving the rest holding a worthless bag of shares. This is a REAL company, doing REAL clinical studies and garnering real excitement around the investment community. This article has been forwarded to management to decide what steps it could take in counter the scam you are publicly accusing it of.

    Reply
    • paul@mytradingbuddy.com'
      April 24, 2017 at 6:14 am
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      Pump and Dump can be perpetrated by anyone with access to an online trading account and the ability to convince other investors to buy a stock that is supposedly ready to take off. The schemer can get the action going by buying heavily into a stock that trades on low volume, which usually pumps up the price. The price action induces other investors to buy heavily, pumping the share price even higher. At any point when the schemer feels the buying pressure is ready to fall off, he can dump his shares for a big profit.

      The technical analysis and opinions of analyst on OWC does in no way imply that the company was involved and in fact just highlights what the charts say. Furthermore, with OTC stocks it is always a Boiler Room tactic for traders that have absolutely nothing to do with the company who already have an established position in the company’s stock, that sell their positions after the hype has led to a higher share price.

      Regardless of your personal opinion and obvious shareholding in the Stock, the Charts do not lie. The price did increase dramatically and was sold off quickly, which from a technical view follows the same pattern as many before as a Pump and Dump.

      The Company in question has nothing to do with this but their share is basically along for the ride as these Boiler Room, “Wolf of Wall Street” esq, pick on them for their scheme

      Reply
  • smart7599@yahoo.com'
    April 24, 2017 at 11:22 am
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    Charts are only one side of the coin when investing in a company. Sure most penny stocks are garbage and can be reliably traded using charts. Sometimes a needle in a haystack can be found in the Otc exchange and Owc is the needle. So you are recommending readers wait until an insane pps drop to 0.21 and 0.06 ? Support is very strong at a dollar. While your readers are waiting for something that will never take place I am making a small fortune and in time a crazy fortune just holding this beauty. Sometimes it pays to actually research a company and hold long for real money to be made.

    Reply
    • April 24, 2017 at 11:43 am
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      Our clients only trade at support or resistance as defined in the analysis, and if a signal is triggered by one of our patterns. Two things can happen.
      Support can move higher from where it was previously which hasn’t happened yet, and a pattern appears such as Pops, Time Continuation, BullWhip or PowwerPlay.
      Secondly, price breaks out via a PowwerPlay signal that breaches through resistance. There was a PowwerPlay buy on April 12th but it did not take out resistance.

      Reply

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