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Technical Swing Trading Spotlight - ETFMG Alternative Harvest ETF (MJ) 4.5.19

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Not much has changed since I last covered MJ in last weeks post. Given our semi-bullish bias, that is, on a technical and micro-trend level, price appears to be holding above the minor swing low that allows us to continue assuming this short-term directional bias.

Price movements havent changed significantly enough to redraw last weeks support and resistance levels. However, we do see a very slight swing trading opportunity.

Given our current directional bias, this is a very small trade (almost like trading noise) that, if triggered, may play out one of two ways. The breakout point [1] is at 36.80, targeting resistance [2] at 38.35. If the breakout occurs without having violated the swing low at 35.60, then the trade has a decent reward-to-risk of almost 1.30-to-1. If price does violate 35.60 but stays above 35.10, then the reward-to-risk shifts toward the risk side at 0.91-to-1.

Not the best trading scenario either way, but an opportunity nevertheless that we assume someone (with nothing better to do) might have already identified. Again, this is not a recommendation. We just call potential swing trading scenarios as we see them.

The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.

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About the author

Karl Montevirgen is an independent content writer. Having been involved in the commodities and FX markets for the last 9 years, Karl writes for several companies and publications in the finance space. 

You can view his extended profile, list of publications, and theoretical content work on his LinkedIn page. 

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