Our Emerald Health Therapeutics forecast 2019 suggested this small cap cannabis stock would rise to $38 in 2019 or 2020. This forecast was published some 5 (!) months ago, after which we also came with a broader Canadian cannabis stocks forecast. In the meantime we see sufficient signs that our forecast is underway. The last confirmation we need is this giant breakout that is about to take place. It would send Emerald Health Therapeutics (EMH.V) many multiples higher, likely close or to our very bullish price target.
Admittedly, one could argue that we are too excited. As we all know excitement when investing tends to lead to disappointment because there is emotions associated to it. As per our 100 investing tips:
Emotion is the n° 1 enemy of any investor. Only a small number of investors is able to manage their emotions when it comes to making decisions and choosing a market to invest in.
Fortunately we have rational people over at MarketWatch who point out that we are already in bubble territory. The bubble is a fact based on the stock price times revenue ratio as well as the wild price swings.
Oh really? We did not know this was these were the ultimate metrics to determine exit point for investors. We have always learned to focus on the charts, especially trends and patterns. According to our Canopy Growth chart we are nowhere near an exit point or a major top, far from it. In other words we expect valuation metrics to become much, much worse before getting close to a peak which is what matters to investors (buy low and sell high).
In all fairness we believe we have our emotions under control, and that we are very rational! We may have published forecasts like the Canopy Growth forecast of $200 and still pretend to be perfectly rational. We did not drink, we are no cannabis perma bulls, nobody us to publish this (never will we accept a payment from anyone to publish a forecast or article on this site), we are not trying to influence or stimulate pump-and-dump.
On the contrary, we look at thousands of charts per month, only to conclude that the cannabis sector looks amazingly attractive as 2019 kicks off. We were spot-on forecast a mega rally in October 2017, and many readers sent us THANK YOU messages as we helped make serious returns.
We are on record now with a similar forecast: the next 6 to 12 monhs will be extremely profitable for investors that take the right positions in the cannabis sector, get in now and do not trade until a major top is set.
Emerald Health Therapeutics is one of our favorite cannabis producers.
As said, our forecast for Emerald Health Therapeutics is $38, a forecast made 5 months ago. This price level would mark a major top if and when it is achieved.
We have seen the bellwether stock in the cannabis space rising strongly, and it is a confirmation that this sector will be on fire this year. Moreover, Emerald Health Therapeutics is very close to breaking out as seen on chart below. A third test of resistance during a period when the cannabis industry is gaining strength with each passing day makes us confident this breakout will succeed. If and when this breakout happens we will know that our bullish forecast is underway!
It may be a matter of days.