Now for those of you who like math for which I am one of you, here is a simple strategy I use to couple the tight bollinger band on a company who’s prospects I am bullish on such that I help mitigate my risk. I have zoomed in that same MJN.v chart for the sake of simplicity:
Here is a case where one could purchase the stock in the $1.75 - $1.85 and simply place a stop loss limit order at the break of the recent support at $1.70. In this case you risk 5 to 15 cents to buy a stock that is on the cusp of reaching all time highs.
Canopy (TSX:WEED; OTC:TWMJF) as an Indicator:
As anyone who is invested in this industry knows, it would be difficult to argue against them being the leader of the sector in virtually every way imaginable. They have the most patients, they sell the most product, they have the highest market cap, etc. I’m not here to argue the merits of Canopy as an investment I’m simply pointing out the fact that they are the leader.
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