iAnthus Capital Holdings Inc. (OTC: ITHUF)
Note: The chart on the right uses CSE: IAN - the same company
iAnthus owns and operates licensed cannabis cultivation, processing, and dispensary facilities throughout the U.S. thereby providing investors diversified exposure to the regulated cannabis market. Recently iAnthus has entered an agreement with Blissiva to launch their products currently in 10 states. Blissiva is a cannabis company that is focused on health, wellness and recreation for women. So if you have an interest or see the potential for further gains in the market segment that focuses on women wellness then perhaps iAnthus deserves a spot in your due diligence queue. Of course, any good analysis should always include some proportion of technical analysis so let's dive in.
If you recall from a prior issue we had discussed the head and shoulders chart pattern. This is a classic bearish charting pattern. What happens when you flip this pattern upside down? You get an inverted head and shoulders pattern. And yes, this is a bullish chart pattern. Just as the head and shoulder chart pattern has a left shoulder, a head, and a right shoulder, so does the inverted version of the chart. The big difference being the neckline and what it represents. When the neckline is broken on a regular head and shoulder pattern then support has fallen and the chart becomes bearish. With the inverted version when the prices move above the neckline then that is your bullish signal to go long. Much like any other signal or pattern, it is always best to combine it with your other preferred signals. In the case of the iAnthus chart shown note the cloud could be used as a level of support. The next time you come across a sexy looking neckline, don’t be afraid to check out the rest of the candles displayed.
206
Technical
Analysis
of the United States
Cannabis Market
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