224
iAnthus Capital Holdings like to describe investing in cannabis as follows “Legalized cannabis is one of the fastest growing industry in the U.S. today. Our companies include licensed operations across multiple U.S. cannabis markets.” As companies such as iAnthus diversify across multiple markets we can diversify our own investing and trading knowledge by adding new tools to our charting arsenal. Before we dig let me ask you a question. What did the nail say to the screw when it saw a hammer coming toward them? Answer: This is not a drill.
OK stop, it’s hammer time. Yes, it is time to talk about hammers. Hammers are something that chartist look for at the end of a downtrend to help signal a reversal. If we look at the chart displayed for iAnthus you will so the
hammer is highlighted after a downtrend then the uptrend commences afterward. What exactly is a hammer? Well the candle itself looks like a hammer. The body of the candle is contained at the top with a longer lower wick. This daily price action can be thought of the bears continuing to run the prices down before the bulls show up and whack them with a hammer and drive the prices back up around the prior levels. What follows after a hammer is generally bullish price movements. Caution that hammers like anything in life are not always 100% accurate. If the hammer fails to signal the bulls a stop should be placed if prices drop below the lowest price of the hammer candle. Then next time you see a stock being attacked by bears, bring a hammer.
iAnthus Capital Holdings Inc.
(CSE: IAN)
(note: this is a Canadian stock for those looking to diversify)