Today we are going to be talking about the top five marijuana stocks. now. This list will have a few mainstream stocks in it, but also a few underdogs. And the way that I attacked marijuana stocks is by focusing on finding opportunities that either show signs of being discounted such as ones that have a history of being oversold and then overbought or momentum positions ones that are making higher highs.

Now, with that being said, most of the opportunities on this list provide volatility that is slightly more extended than we usually cover, and thus in this sector I've been tended to focus on swing trading. These opportunities, however, there are still intraday opportunities in the sector is just that. the ones on this list tend to have more swing trading opportunities. But in any case, the only thing I ask of you in return for this video is that you hit that beautiful and ravishing like button.

And also don't forget to subscribe if you see value in the following video. So the broker that we're going to be using today is we bulb. Honestly, a pretty beautiful platform and you'll get to see it more in this video if you'd like to take a look at it. We Bowl is the free Commission broker that is offering a free stock for anybody who uses our link to try out the platform.

Ok, so I want to mention that instead of factoring in the overall fundamental view of the marijuana sector instead, I've been focusing on sort of drowning out the news and focusing on the underlying price action behind it. and the reason is because half the people in the financial media think that's a marijuana sector is about to implode on itself, while the other half think that it's about to explode. It's our job to focus on the underlying price action behind it. It doesn't really matter if you're bullish or bearish on the overall marijuana sector, What matters is that we can use the price action to profit off it.

Now with that being said, we're starting with CGC Now CGC falls into the momentum category. CGC has a history of breaking old resistance and making higher highs. But the key here is we saw this discount and then rapid recovery starting this year. After the recovery, it slowly sold off and now we're starting to see some early warning signs of a reversal.

But the key here is that if we break above previous resistance at $50 we could see a prolonged play up until $59 This stock has a history of failing to push past the higher high resistance level. As you can see from this section of the price action. later we saw an immediate failure and then very close effort and making a higher high. It, but then another ultimate failure here.

So this early warning sign of a reversal and price strength above the SMA could be a signal to us that we are in getting closer to another attempt at breaking or at least reaching high resistance at 59 and conservative resistance at 55. That being said, because this is a momentum play, I am going to need to see that break into higher highs and a confirmation of course in order to convince me to take a position. The beauty with this price action though is that the previous products of this doctor actually quite clean. We have this slow increased over the Esmay line and as we know this allows us to track the price action and see signs of weakness.

Stocks that have this clean run-up allow us to find easy entry and exit points as we can much more easily see when the stock is going to reverse. As we know, this is excellent because we could see price action strengths depicted in a larger gap of real estate between the SMA line and the price action and then the price weakening as it comes closer. This is preferable because stocks the gap up extremely quickly or rise sort of half-heartedly are much more challenging to find entry and exit points with, whereas with this we could simply track the price action relative to the SMA and the previous patterns. Now my problem that I've always had with momentum plays though is the fact that these often have a very large amount of downward potential and are usually overextended on the RSI by the time they are making higher highs.

It's harder because it makes it hard to gauge our risk vs. reward as it's so easily to deal with oversold positions and that's really the trade off with momentum plays. We're not necessarily able to accurately gauge the upward vs. downward potential, but in return for this, we do have trend direction in our favor because an oversold play will generally have the upper versus downward potential more defined.

but if it's oversold, it's down trending in terms of direction, which has its own problems. which means that there is something actively going against us, but with a moment to play, the direction is in our favour because the stock is making higher highs. So while we can't identify as accurately the upward versus downward potential, we have the direction in our favor to make up for it. So it provides us with a little bit more security in terms of risk management, and as we know, stocks that have been consistently up trending are more likely to continue to do so as compared to a stock that has a prolonged discount.

So another reason I put this play first is because it is widely considered one of the main benefactors of progress within the marijuana sector. As a result, any sort of perceived progress in the sector tends to disproportionately affect stocks like this one, which may or may not help push it in the direction that we want. But as I said, fundamentals in the marijuana sector can be pretty foofy in the short run, and it's going to be up to us to focus on using the technicals to back up Any sort of fundamental idea that we have now see Web is another play that I see a lot of value in. Now fundamentally speaking, see Web is on the CBD side of the marijuana sector.

Their sales grew a whopping 71% in quarter four of 2018. but again, the reason that I mentioned in the fundamentals what this is is because when we're trading kickers of companies and want to make sure that the underlying asset is not a ticking time bomb if you were tossing grenades of sort of rotating value, sure you could hold it and then toss it to somebody and get a profit, but eventually you're gonna hold the grenade and it's just gonna blow up in your face. And in the grenade circumstance, blowing up does not equal profit. Now see: Webb didn't have as clean of an ascent as Cgc did, as we do see some struggling back and forth over the SMA line, but this consistent up trading pattern over nearly all of March almost doubled the share price.

started at around $18 a share and then hit highs at over 33 before showing weakness and breaking below the SMA line one final time. Now, this reversal lasted much of April, but we did just start seeing a show of price strength past the SMA line and an extended reversal with some strength above it. Now the question with this is whether the slight sell-off here is an opportunity to buy in near oversold or if it is a prolonged sign of a longer downtrend. And honestly, it's quite hard to say based on the price action that we have now, but looking at the trend from the previous run-up to stock tends to have periods of over selling during its run ups, which brings about signs of what I call fake price weakness.

If this is indeed another sign of fake price weakness instead of a prolonged trend reversal downwards, then we do have a previous pattern confirmation because this stock does have a previous pattern of running up after failed reversals downward. Okay, so the next one is going to get me into a bit of trouble. This is one of the more seemingly speculative plays, but I do see a lot of value in it now. CB WTF CB WTF is in the supply chain of the marijuana sector.

They also have a beautiful balance sheet. not that we really care since we were just trading it when it comes to these super low cap stocks. I Do like to know that the underlying asset that I'm trading is indeed an asset and not just a shed behind 7-eleven now. CB WTF has a pattern of over selling and over bind which is known as none other than the comeback King pattern.

Now this is one of my favorite patterns and one of the most common patterns talked about on this channel because it provides opportunities to buy in when it's oversold and simply hold out until it's overbought and then sell out at a profit. Even if you're looking at a shorter term position, we see numerous opportunities to buy in and oversold and simply write the price strength over the SMA line until overbought or until early warning signs of a reversal. Although I should mention that a lot of people think that I recommend blindly holding stocks from oversold to overbought, sometimes this will work, but that's not exactly what I'm recommending. The best way to take advantage of comeback, king and queen patterns is to pair your understanding of the pattern with an understanding of upward versus downward potential and most importantly, price strength.

If you'd like to learn more about the pattern, I have a link in the description below that explains the pattern and how to take advantage of it. Obviously, we're not just buying stocks because they're oversold, we need to see signs of a reversal. But in any case, the reason that I hesitate to put extensively locat penny stocks on this list such as CB wTF is because a lot of people tend to get upset because they're so low and they contend they tend to be a little bit more sporadic and less predictable. But I think that as traders discounted, any part of the market that provides liquidity for us to trade off of I think that's a mistake.

Instead, you should acknowledge that these are more sporadic and figure out a strategy that allows you to trade them because this one is a extensively low penny stock. That means that we're going to want to employ extra caution when taking advantage of the fluctuations and making sure that we do indeed have the volume that we need to trade off of. CB WTF also seems to have a decent amount of room to run, but we are going to want to wait to make sure that we're getting in below fair value so that we can improve our odds of success now. Krone Had an extended uptrend for nearly all of January and if you check back on my marijuana picks from earlier this year, I did cover Kron but it actually ran up a lot farther than I Thought it would.

Nonetheless, the stock made it to 25. It sort of struggled to find a bearing for a bit before an ultimate reversal of trend after the earnings released pushed it below the $19 support line. Now it seemed to find support at pre run-up resistance at fifteen dollars and thirty cents ish and is now showing longer signs of a reversal with an intraday gain of 7% on the day that I filmed this video. Now the question is if Cro N will have the momentum to experience a more prolonged reversal in May that could potentially allow it to return to the resistance level and possibly even break it at $25 that would be about a $9 increase.

And while we are currently trading in your fair value, the stock does appear to hold its pre run-up support at about 15 dot 30 since as we know previous, resistance tends to provide later support. and if the price is able to stay above that support level, that would be a great sign of strength if we combine that with early warning signs of a reversal and a confirmation that I can see a lot of value in this position moving forward. Monkeys are sort of mixed on Cro M. We generally see most price targets to be at around the current trading price, although we do see some upgrades as well as some down grades well I don't value price targets and analyst opinions.

they tend to provide a level of extra support as sheep investors tend to be less likely to exit and more likely to enter positions that are backed by their favorite monkeys. That being said, the monkey support level is somewhere around sixteen and twenty dollars, but there is a decent amount of longer downward potential, so we will want to make sure that we get in upon confirmation of an uptrend. Okay, great and last but not least is a leaf. Now a leaf is taking a massive hit since February we are currently trading at near fair value.

but I think a lot of my longer-term Zipp traders already know what I see in the price action. here. We have a solidly down training stock that broke past several support levels and is now showing price breaks over the SMA line. We have a discount from long term resistance at two dollars and thirty cents all the way down to the current trading price at one dollar and thirty cents.

That's a decent amount of upward potential for us, and I'd call conservative support at about 1.15 as we see it holding about there now. I'd say the one point of caution with this is the other points at which we saw attempted reversals, but since the declaration of the extended reversal, the two previous failures provided less momentum and less of a show of strength as compared to the current one. If previous price action repeats itself, we should either see this one show some signs of an uptrend. On the other hand, if this early signal of weakness proves to actually be weakness, we could see a further short-term breakdown and then a subsequent run-up which would allow us to get in at an even better entry point.

So I think the key with this is making sure that we are indeed getting a good deal. That means behind in when it's either at fair value or below fair value, but also making sure that we do have those early warning signs of an uptrend and preferably confirmation. The issue with these videos is that while I can find stocks with technical value in the upcoming months, I obviously can't predict all the different intraday movements that can happen week after week. As a result, I Always try to formulate these videos with different approaches that you could take based on different ways that the Internet it's can pan out.

And of course I always encourage you to utilize basic risk management skills and of course make sure to wait for a confirmation before entering into a position anyways. I Hope you found this video useful If you have any questions, don't forget to comment below. You can also reach out to us on the Zipp train a circle Facebook group and we also have a discord chat that you can join by joining these zip traders circle Facebook group the links in the top post in that group. You also have a trading tutorials playlist which I always link to in the description below I Tried to build it in a way that works from the ground up, so if you're completely new to trading, that would be a great starting point for you.

I Also recommend if you're having trouble actually making money in these markets to go ahead and test out all of your strategies and skills using a paper trading platform using a back-testing rewind trading platform. Whatever kind of platform you would like to use to test out and practice your strategies because one of the biggest reasons that people lose money is because they didn't practice first. It's kind of like going and riding a bike and then complaining when you fall over and break your leg. It's just not a good strategy to go about it.

You want to first practice with training wheels and the best way to do that is to simply use a back testing rewind trading platform. And if you have to use a paper trading platform and then work your way up and once you've grown that account, then you can use real money of course. We also have a trading tutorials playlist I Try to design it sort of from the ground up. You start with how to use the platform and then you go to when to buy and sell stocks.

Then you go through the indicators and you go through a bunch of other stuff that's super relevant in terms of learning how to efficiently trade from 0 to 100. It's a great place to start and all you have to do is click the link below. It'll take you to our trading playlist that's on this YouTube channel. It's also on the main zip, crate or home page.

You just have to push trading tutorials Anyways, Have a great day folks and I'll see you in the next video.