originally published Sunday, January 21, 2018

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All Marijuana stocks

Charmingly named Freedom Leaf was discovered during a scan of cannabis stocks looking for positive patterns. It has a very positive pattern indeed. On its latest 2-year chart we can see that after a bearmarket decline during 2016 and the 1st half of 2017, it went into a basing pattern, and made its final low as recently as October of last year. Then things definitely took a turn for the better with it making a run towards the resistance at the top of the base pattern in November. This failed and it backed off, only to regroup and make a more determined run at the resistance against the background of sector strength around the turn of the year, this time on very heavy volume which drove volume indicators steeply higher, a strongly bullish sign. Now we will look at recent action in more detail on the 3-month chart.

On the 3-month chart we can see that it failed again to take out the resistance very early in the year and briefly dropped back hard on the Sessions scare. However, it quickly recovered and then blasted through the resistance on all-time record volume, clearly a valid breakout move. It continued a little higher before reacting back on reduced volume towards what is now support at the upper boundary of the base pattern, which is typical post breakout behavior that throws up a buying opportunity for those who didn’t take positions ahead of the breakout, such as us. The appearance of a hammerlike candlestick on Friday at the support is a sign that the reaction is done and that it is ready to turn higher again.

Conclusion: this is a really strong looking cannabis stock, even if it takes a little while to get moving again. Volume and volume indicators are exceptionally bullish, and we are believed to be at a good entry point here after the reaction back to the support at the upper boundary of the base pattern, and Freedom Leaf is rated an immediate strong buy. The number of shares is issue is a little on the high side at 130.5 million, but certainly not at levels that deter us from taking an interest in it. The number of shares in issue is factored into the low stock price anyway.

Freedom Leaf website

Freedom Leaf Inc, FRLF on OTC, closed at $0.095 on 19th January 18.

Posted at 6.00 am EST on 21st January 18.

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 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 stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.