mjmay22-300x154 ZYTrade Technical Snapshot: The Cannabis Industry (MJ) 5.22.20

Year to date, with the S&P attempting to stage a recovery, currently at -8.49%, the cannabis industry (using MJ–Alternative Harvest ETF–as a proxy) is holding at -22.60%. Making a cross comparison at the sector level, the cannabis industry has fallen behind all eleven sectors.

On May 18, MJ broke above resistance at $12.82 on fairly large volume, signalling a possible breakout from its 2-month trading range. Taking into account the March and May lows, the underlying trend, at least for the short-term, appears to be upward. MJ is currently challenging its 50-Day moving average, though it is well below its 200-day, and the 50/200 “death cross” downtrend is still in place.

 

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