AMMJ Trendline Backtest

AMMJ (American Cannabis Company Inc) was one of numerous cannabis stocks recently highlighted as very aggressive trade ideas with well defined technical levels & chart patterns as well as above average gain (and loss) potential. AMMJ, as with several of the other stocks recent highlighted in the sector, went on to breakout & hit the first price target (50% above where first mentioned by @bluemagic just over two weeks earlier) & has since pulled back with the stock currently backtesting the downtrend line, thereby offering an objective new entry or re-entry for those that booked profits just shy of the 0.34 resistance/target level.

Once again, this is a penny stock which should be considered a very aggressive, highly speculative trade so DYODD & make sure to adjust your position size or pass if this type of trade does not mesh with your risk profile or trading style. As with the other cannabis stocks that have been recently highlighted in the trading room, this is an unofficial trade idea meaning that there may or may not be any follow-up. I will say that an ideas stop would be on an intraday or even better, a daily close below 0.1330 with the next two price targets as (once again) the 0.34 resistance level & then the 0.52 level (with sell limit orders set slightly below to account for the spread & to minimize missing a fill, should the stock reverse just shy of resistance.

2017-03-08T21:19:51+00:00 Apr 25, 2016 12:25pm|Categories: Unofficial Long Ideas|Comments Off on AMMJ Trendline Backtest