Score 9.9 (out of 10): ADVISORSHARES PURE US CANNABIS poised to rally -12.6% drop in 2 months

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What’s Going On Here?

Cannabis sales stagnated in November, according to BDSA data. Tough year-over-year comparisons over the summer due to a spike of sales in 2020 have transitioned to more stable cannabis sales trends. In November, growth ranged from -11% in Nevada to +27% in Arizona compared to a year ago. Medical cannabis sales fell -39% from a year ago.

Why Now?

ADVISORSHARES PURE US CANN has reached a new shorter-term low. Previously, during similar occasions, ADVISORSHARES PURE US CANN shares had a median return of -12.6%, over the following 2 months based on 3 historical occasions with 3 of those showing negative returns (100% hit ratio). This sell signal for ADVISORSHARES PURE US CANN received a high score of 9.9 (out of 10). This insight was generated on 2022-January-6 with last price of 23.88.

What’s This Company About?

ADVISORSHARES PURE US CANN is in the cannabis business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: MSOS.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 20.86 (-12.6%) has been reached. Based on ADVISORSHARES PURE US CANN’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 26.68 (last price at 23.88), which is equivalent to a 11.7% rally.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

-15.4%, -12.6%, -6.9%

Historical Chart:

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Summary:

NameAdvisorshares Pure US Cannabis
ViewDown
Star (1 to 10)9.9
Target-12.6%
Time2 months
Hit Rate100%

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