2021 May Be A Good Year For The Cannabis/Marijuana Sector

Great progress in terms of legalization was made for the Cannabis/Marijuana sector in 2020. The 2020 elections resulted in a number of US states engaging in new Cannabis-friendly policies and laws being approved by voters. This suggests a new rally in the Cannabis sector may be setting up in 2021 and beyond for traders. Our Best Asset Now trading strategy is always looking out for the next sector to make a trade, and the Cannabis sector is certainly one we are keeping our eyes on.

WEEKLY MJ PRICE FLAG SETUP

My research and my team believe the recent longer-term bottom in the MJ ETF, the Alternative Harvest ETF, suggests a broad bottom is setting up in the Cannabis/Marijuana sector. If this bottom in the Cannabis sector continues to profit support for the entire sector, then we may see price appreciation across many individual Cannabis stocks over the next 12+ months. Additionally, this price appreciation may prompt quite a bit of consolidation across the entire Cannabis/Marijuana sector.

The global use and demand for CBD & THC related products may continue to expand as medical and personal use expands across the US and into other nations. We are still near the infancy of understanding the true medicinal benefits of this all-natural product. A new upward price trend in this sector may prompt a global expansion/consolidation event where the Cannabis/Marijuana industry attempts to restructure into true global power companies.

Our research team is focused on the possibility that an early 2021 price decline in this sector may set up a broad sector bullish trend near March/April 2021 (or earlier). We believe the process of this longer-term bottom setup will still require another attempt to consolidate near the MAGENTA support channel before a more substantial breakout will take place.  The current bottom setup is very similar to a Bullish Price Flag setup and we believe the next price low may be an area where real opportunity exists for a final bottom in price.

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