Had it just been Tranzbyte Corp. (OTCMKTS:ERBB) or Growlife Inc. (OTCBB:PHOT) or Hemp, Inc. (OTCMKTS:HEMP) to drop the hint, I honesty probably would have thought nothing of it. But, to see HEMP and PHOT and ERBB all take the same shape on Tuesday, I have to think the inherent clues of that shape can be taken at face value; when the whole industry does it, there’s usually a very big reason.
And what exactly did Growlife, Tranzbyte, and Hemp do? It has nothing to do with the companies themselves, and it wasn’t anything news-based. Indeed, there’s been little news from or about the medical marijuana, hemp, or recreational marijuana industry or its big players in quite some time. It has everything to do with the shape of the chart, which implies the last of any pent-up selling was flushed out on Tuesday, and bulls finally started to trickle back in.
Perhaps the chart of ERBB tells the tale the best. The opening price of $0.057 was a tad lower than Monday’s close, then we saw a deep low of $0.03 on an intraday basis… the biggest intraday plunge we’ve seen in weeks, and for a brief moment, a terrifying move that led Tranzbyte to think this stock was going to completely implode. By the end of the day, however, the stock was back up top just a hair above its opening price to close at $0.058.
Why the big intraday turnaround? It matches the intraday turnaround of the market’s opinion of ERBB, going from a net-bearish to a net-bullish environment.
Thing is, it wasn’t just Tranzbyte. If it were just Tranzbyte, we could have chalked up the big swing to mere volatility. We also saw Growlife Inc. and Hemp, Inc. do the same. Take a look. Here’s HEMP…
…. and here’s PHOT…
In all three cases, what started out as “from bad to worse” today ended as a “getting better” situation. Tuesday’s bars may well serve as pivots back into uptrends.
What happened to cause it? Again, there was no news or real revelation. This is actually fairly common with highly watched and highly speculated stocks. 3D printers and solar stocks also tend to ebb and flow together, and are driven more by fickle mob mentality than fundamentals. Regardless of the reason, however, it looks like the marijuana industry’s big names are poised to snap back nicely from here.
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Marijuana Stocks Just Turned the Corner (PHOT, HEMP, ERBB)
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