CANNABIS SATIVA INC...

originally published Tuesday, November 14, 2017

Printable Version

All Marijuana stocks

We have stayed away from US cannabis stocks during much of this year, because of an ongoing prolonged correction exacerbated by the threat of the Feds and in particular Attorney General Jeff Sessions coming down hard on the industry. But it seems that common sense is eventually going to win out, as it finally dawns on them that they are “shooting themselves in the foot” with their lurking threat as Canada is “walking off with the pie” and becoming the leading global player in this industry. So the Feds are expected to relent, which will give a big green light to the industry – and many US cannabis stocks are already starting to advance in anticipation of this.

A US cannabis stock that has only just started moving and appears to be shaping up for big gains is Cannabis Sativa, which is one we made big profits in during the ramp last year, before it settled into the persistent downtrend that we can see in its entirety on the 1-year chart below. Whilst the current trading range could be just another sideways step before another drop, it is not believed to be so for several reasons, chief of which is that other US cannabis stocks are already starting to advance, and upside volume has been building in this in recent weeks, driving volume indicators higher. As we can see, it is already close to breaking out of the downtrend, and should it do so it will probably rise steeply to quickly take out the 1st line of resistance shown.


The 6-month chart shows recent action in more detail, and the main points to observe on this chart are the larger white candles on increased upside volume, which is driving volume indicators sharply higher. This is very bullish behavior that is expected to lead to a sharp advance soon, beginning with the price taking out minor resistance near to $3.00 to run at the more serious resistance in the $3.40 - $3.60 zone.


The 5-year chart is most interesting as it shows that a potential giant Cup and Handle base is completing in Cannabis Sativa. If this is the case then a really big bullmarket is just around the corner in this stock.


The conclusion is that Cannabis Sativa is on the verge of breaking out into a major bullmarket and it is rated an immediate buy and a stop may be placed just beneath the support, say at $2.56, in case it breaks lower instead.

Cannabis Sativa

Cannabis Sativa Inc, CBDS on OTC, closed at $3.02 on 13th November 17.

Posted at 6.30 am EST on 14th November 17.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment or securities advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market technical analyst, Clive Maund is not a Registered Investment Advisor or Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.