In a recent issue of “Cannabis Confidential,” Todd Harrison provides a succinct analysis of the current market dynamics within the cannabis industry, particularly highlighting the performance of AdvisorShares
Pure US Cannabis ETF (NYSE:MSOS).
Harrison, known for his expertise in financial markets and cannabis investments, offers insights into the movements of this ETF and broader market indicators.
MSOS Performance Highlights
According to Harrison, MSOS gained 3% in the recent session, marking a significant recovery with an addition of 14% since the previous Monday.
This uptick follows a challenging six-week period where the ETF experienced a 40% decrease, which Harrison described as a severe market correction following a spike on April 30.
Market Dynamics And Key Levels
Harrison notes that early trading showed resilience as initial support levels at $7.50 and $7.30 held firm, allowing bullish investors to drive the prices towards critical resistance around the $8.00 mark, aligned with the 200-day moving averages.
He also points out the impact of the strengthening U.S. dollar, which reached its highest level since November, posing challenges for risk assets like cannabis stocks.
Looking Forward
The newsletter forecasts key events that could influence the market, including the upcoming presidential debate and the month-end trading session.
Harrison emphasizes the strategic positioning of MSOS and potential market shifts, indicating a critical juncture for investors.
Lastly, Harrison touches upon the broader challenges facing the cannabis industry, such as regulatory hurdles and competitive pressures from other sectors. This context is crucial for investors to understand the complexities and external factors impacting their investments.
Navigating Volatility: MSOS’s Resilient Performance Amid Market Fluctuations
Data from Benzinga Pro shows that despite recent market challenges and the impact of a strong U.S. dollar, MSOS showcases resilience in its long-term trajectory.
Over the past year, MSOS has surged by 43.49%. Year-to-date, its growth remains positive at 11.55%, despite a recent three-month downturn where it faced a 16.99% decrease.
Delving deeper into monthly performance, MSOS experienced significant volatility; in June 2024, it dipped by 5.49%, closing at $8.02 from a high of $8.12. This decline followed May’s sharp 15.84% drop from a high of $11.05 to $8.02, even as trading volumes soared to 315.46 million shares with a market cap peaking at $1.04 billion.
By contrast, April witnessed a notable rebound with a 9.59% increase, peaking at $11.36, supported by robust trading activity. The positive trend started in March, with a 10.24% gain.
These investing issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
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