Good Morning! – are you ready to make even more money? – excellent – that’s what I like to hear!
With the big name stocks in this still young industry already starting to forge ahead, there will be plenty of investors, like us, looking around for remaining good stocks that haven’t started to move yet, but look like they are about to.
Yesterday we nailed two more breakouts, with Medical Marijuana (MJNA) breaking dramatically higher and rising 15.9% on the biggest volume since last January and Vape (VAPE) breaking out of its bull Flag and rising a more modest 10.5% on the biggest volume this year. Our United Cannabis (CNAB) rocketed 24%. In addition, we saw the start of a breakout drive in Emblem Corp (EMC.V) which powered 15% higher.
This sector is ON FIRE and that is why we are squarely in this space.
Alright, so what is left to mop up before it really starts moving and we can then settle back in our armchairs to watch our portfolio continue to grow in value? In this article we are going to look at one that has a great chart but hasn’t broken out yet, but is believed to be just about to, PotNetwork Holding.
We start with the 2-year chart which shows us a particularly fine example of a giant Cup & Handle base that has taken the best part of 2 years to form. As we can see it has been a frustrating time for investors (speculators) in the stock this year, as it has basically done nothing, trundling sideways in a narrowing trading range marking out a large Handle to complement the Cup and complete the base pattern. Of course, the fact that it has done nothing all year doesn’t mean that it isn’t about to and in fact everything is in place for this to break out and take off like a rocket. The duration of the Handle part of the base pattern – all this year – has allowed the overbought condition that existed following the high volume rise out of the Cup to neutralize and furthermore, and very importantly, it has allowed time for the 200-day moving average to completely catch up with the price. In addition, we can observe a very bullish volume pattern within the Handle, with volume dying back steadily as it progressed, but then building up dramatically over the past 6 weeks, as stock rotates from weak to strong hands at an increasingly rapid rate. With the triangular Handle of the pattern closing up and the price and moving averages tightly bunched together, everything is in place for an upside breakout leading to a vigorous bullmarket advance. This is precisely the point that we like to show up on the scene, having let other investors do all the donkey work of building out the base pattern.
On the 6-month chart we can see many of the points made above, but in much more detail. In particular, observe how the price is just above the rising 50-day moving average, which is just above the rising 200-day, with the Handle Triangle closing up. You couldn’t ask for a more bullish setup, and as if this isn’t enough look at the big white candles and upside volume towers of recent weeks, as Smart Money gets more aggressive about soaking up the remaining supply available at these prices. This is why the volume indicators look buoyant.
The conclusion is that PotNetwork is a screaming buy here. If a lot of you buy near to the open it could gap out of the Triangle, but don’t let that put you off buying, because a lot of other traders will see this breakout and come down off the fence and pile in, driving it higher still.
PotNetwork Holding
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PotNetwork Holding Inc, POTN on OTC, closed at $0.07 on 27th December 17.
Posted at 5.10 am EST on 28th December 17.