I haven't been charting long, but one thing I've learned - if it ain't broke, don't fix it. After last week, a lot of my charted predictions went to shit, but NEPT held up. I've used this chart to swing trade Neptune since late August/September. The trend line has held up beautifully and gotten me in at three excellent entry points.
Some things to note after 10/12:
(1) We've got a beautiful bull pennant formation which looks like it should break out by the end of the month. Lots of consolidation between 3.80-4.20.
(2) We've got a green hammer candlestick from Friday - this could signal a breakout early next week; however, I'm cautious on this because the hammer only formed at the end of the day as buyers came in during the last hour. This was likely caused by anticipation of possibly receiving their certification from Canadian authorities, which have historically been released after-hours on Friday. No certification came, so those buyers may jump ship Monday morning. If so, this presents a prime buying opportunity. The last three dips I've taken positions at 3.86, 3.95, and 4.02 (yesterday). I selected those price points based on this chart, and so far they've been near perfect entry points. Unless there's a larger sell-off Monday morning, I do not think you'll have a great opportunity to get in here again below 4.00.
(3) Next week's news will focus on legalization in Canada. I predict pot stocks will see a significant increase in traffic. When the big pot stocks see an influx in volume, NEPT usually does as well. I suspect that the more patient, conservative buyers see it as a less volatile, higher growth opportunity than say TLRY or CGC - for those who don't want to pay the premium on the big tickers, NEPT looks like a "sneakier" high-upside play, especially with a major catalyst on the horizon (see below).
(4) When letter of readiness was issued, NEPT jumped to 5.15 (albeit briefly); I think that gives us a nice floor expectation of where the breakout will go when NEPT actually receives its license. If you swing trade, you may be able to play a small run-up that occurs pre-license, because I believe that we'll see price return to the 4.00-4.20 level until the license is obtained.
Some things to note after 10/12:
(1) We've got a beautiful bull pennant formation which looks like it should break out by the end of the month. Lots of consolidation between 3.80-4.20.
(2) We've got a green hammer candlestick from Friday - this could signal a breakout early next week; however, I'm cautious on this because the hammer only formed at the end of the day as buyers came in during the last hour. This was likely caused by anticipation of possibly receiving their certification from Canadian authorities, which have historically been released after-hours on Friday. No certification came, so those buyers may jump ship Monday morning. If so, this presents a prime buying opportunity. The last three dips I've taken positions at 3.86, 3.95, and 4.02 (yesterday). I selected those price points based on this chart, and so far they've been near perfect entry points. Unless there's a larger sell-off Monday morning, I do not think you'll have a great opportunity to get in here again below 4.00.
(3) Next week's news will focus on legalization in Canada. I predict pot stocks will see a significant increase in traffic. When the big pot stocks see an influx in volume, NEPT usually does as well. I suspect that the more patient, conservative buyers see it as a less volatile, higher growth opportunity than say TLRY or CGC - for those who don't want to pay the premium on the big tickers, NEPT looks like a "sneakier" high-upside play, especially with a major catalyst on the horizon (see below).
(4) When letter of readiness was issued, NEPT jumped to 5.15 (albeit briefly); I think that gives us a nice floor expectation of where the breakout will go when NEPT actually receives its license. If you swing trade, you may be able to play a small run-up that occurs pre-license, because I believe that we'll see price return to the 4.00-4.20 level until the license is obtained.