rounded corner
rounded corner
top border

Momentum Divergence in ETFMG Alternative Harvest (MJ)


Bookmark and Share


Just a quick note for those looking to get in on cannabis ETF, ETFMG Alternative Harvest (MJ). The weekly chart above shows that MJ bounced off its 8-month low at 23.18. As you can see, the Momentum indicator shows a clear divergence between price and momentum (that is, based on its reading--the same cant be said of the RSI, another momentum indicator, which shows a steady decline).


Of course, further downside is always a possibility, but at that point, there is no historically significant support level to be seen. Volume on the upside seems low (and dwindling), so anyone who jumped in at this last stand of a support level might have been a brave soul seeking to take a short-term profit at a near-term level like 29.25, or a long-term investor who saw this level as a bargain price to snag a nice position. Bear in mind that cannabis is still an emerging industry rife with uncertainties. But taking the longer-term perspective, and it goes without saying, theres no reason to think that its an industry about to end.


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.




Recent articles from this author



About the author


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

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

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2019 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy