If you are looking to add some additional stocks to your trading portfolio, choosing a percentage to contribute to these stocks for a long term investment may really pay off.
Top U.S. Pot Stocks: Stock #3 – Scott’s Miracle-Gro SMG
The weekly chart clearly shows the long-term upward trend since the beginning of 2008. The upward movements are of low volatility and constant. The downward movements, on the other hand, are short-term with increased volatility.
The 60.00 mark represented resistance in the years 2011-2015. After its break, it can be regarded as a support zone. Since the beginning of the year, there has been a significant rise above the last local high of 80.00.
The subordinate downward trend is considered broken when the last local high is exceeded. For traders, it remains to be seen how the price will develop further. In the short term, one should wait and see whether the price remains in a sideways movement or develops a new trend. The time unit in the weekly chart should be kept in view.
According to the rule “No Trend – No Trade“.
The mark between 68.00 and 72.00 should be kept in view. A correction of the last upward movement is likely. At the same time this mark represents the 50s Fibonacci retracement. Short term traders can make good use of this mark. If at the price level increased volume comes into the market, the last local high should be taken as the target of the trade.
All in all, Scott’s Miracle-Gro is a clear long-term upward candidate. In the short term, the further development of the share price should be awaited. Further price increases are likely, but price setbacks may occur. The stops should be placed here somewhat more generously until the trend situation is clearer.