The cannabis sector has seen some recent action after somewhat of a drought. 2017 was a breakout year for many new entrants into the medicinal marijuana realm, and many acted like crypto currencies did the same year. But then they lost their buzz for a while. While many sectors and the broad market are looking a bit tired the MJ party is about to get lit.
Horizons Medical Marijuana Life Sciences ETF (HMMJ) or (OTC:HMLSF) is a Canadian ETF that tracks many of the common stocks in the sector. It only started in 2017, but from the 2018 peak there is a very clear Elliott Wave corrective "WXY" flat pattern. Off the December low is a clear impulsive 5-wave move up that has proportions in-line with being only the wave 1 of a much larger move starting. It is currently retracing correctively as an abc for wave 2 with support in this 20-17 region. The 3rd wave should head toward the 40s into 2020 provided support holds.