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Time To Buy Emerald Health Therapeutics After It Lost 50 pct In October?

Emerald Health Therapeutics is our favorite cannabis stock. We explained in great detail in our Emerald Health Therapeutics Stock Forecast for 2019 that we have a price target of $38. This is based on our bullish Cannabis Stocks in Canada Forecast for 2019 combined with an amazingly bullish chart setup for Emerald Health Therapeutics. With the sell off in the cannabis sector in October, which led to a 50% decline in the share price of Emerald Health Therapeutics, is our forecast still accurate? In other words time to sell or time to buy Emerald Health Therapeutics?

The short answer: we believe the correction has run its course, and this is a buy-the-dip opportunity, provided Emerald Health Therapeutics continues to trade above $3.30.

First, the sell-off in the cannabis sector, especially in Canada was vicious. We saw a resilient cannabis sector last week, but, visibly, that did not last long. In one week prices almost collapsed with 50%. 

This is a very aggressive sell-off, sudden and hard.

The good news, if any, is that most breakout levels are respected. Although not included in this article but the leading cannabis stocks in Canada (think of Aurora Cannabis, Aphria, Organigram) saw their breakout points tested. So far, tests succeeded.

The same accounts for Emerald Health Therapeutics. It got hit hard, and fell even outside of its long term rising channel shown on below chart.

However, there was a strong reversal point today, halfway the trading day, and the recovery brought Emerald Health Therapeutics back in its channel.

We absolutely want to see the $3.30 respected at the close of the next few weeks. If that’s the case, which is an absolute pre-condition, than this offers a buy-the-dip opportunity!

If not, however, there is lots of bearish energy that needs get cleared first. We do not anticipate this, but recommend readers to always keep an open mind, not a fearful mind but an open mind.

buy emerald health therapeutics

 
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