According to the CannabisInvestor.Ca most experts are supposedly in agreement that, after multiple failed bottoming attempts, the cannabis market is at its bottom and falsely claim that cannabis stocks roared back to life last week with many pot stocks posting 20% – 60% weekly gains. Unfortunately, however, that statement can not be supported by the facts and, as such, it is nothing more than totally misleading HYPE – a lie.
By Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money!
In fact, the cannabis sector continued to crash across the board last week (-6%) as the table below independently points out with almost all marijuana stock, be they Canadian Licensed Producers (LPs) or American Multi-States Operators (MSOs), dropping drastically, as shown below:
CannabisInvestor.Ca goes on to say that “investors can now begin to cast their lines into the choppy waters as bottom fishing season is officially underway and one of the best baits for bottom fishing is the technical indicator called the relative strength index (RSI) which is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
Cannabis investors can use the RSI indicator as a tool to search for cannabis stocks that are oversold and possibly undervalued due to extreme and overdone selling pressure. One important piece of advice, just because a stock is oversold doesn’t mean its undervalued. Some of the oversold pot stocks on our list below are possibly undervalued while others are likely on their way to bankruptcy. It’s up to you to distinguish which stocks are a great value and which ones are headed for the pot stock cemetery.
Without further delay, let’s jump right into our list of the top 20 most oversold cannabis stocks.”