Just over a month ago, I outlined that I was seeing some basing in the cannabis sector. In my personal trading and investing, I love to look for beat up sectors which have been in a major downtrend. I then look for basing as a sign of selling exhaustion and thus a potential bottoming and reversal.

The technicals are key for me as I look for the breakout to trigger the reversal. The Cannabis ETF’s have shown multiple basing patterns in the last few years. However, no breakout has been triggered, and instead, we breakdown and continue to make low after low.

The Global X ETF (POTX) is still printing new all time record lows. There was the potential of a reversal cup and handle pattern with a break and close over $13.25 as I highlighted in my previous cannabis article. The breakout did not occur and instead we broke down and printed new lows.

The blue rectangles I have highlighted have been previous times that POTX was showing signs of bottoming and a potential reversal. You can see why I remain patient and await the breakout trigger before jumping in. None of the ranges and consolidations broke out and instead we kept heading lower and lower.

Something a bit more positive for cannabis bulls would be the price action on MSOS. The technicals remain unchanged since my last cannabis article. We remain in this range and the breakout above $7.30 remains the key trigger for a move higher.

The positive is that we have not broken down below to print new all time record lows. There are buyers here at this range.

From a fundamental perspective, this highlights cannabis investors preference for American cannabis companies. The main catalyst for cannabis investors will come in the legalization of cannabis in the US.

Unfortunately the Canadian side of things isn’t faring well. HMMJ failed to confirm a breakout above $13 as I mentioned would be required in my previous cannabis article. Instead, we tested support at $11.50 and broke below printing new all time record lows.

It doesn’t look too good for cannabis. But what if I were to tell you there is one cannabis stock which is looking extremely bullish and has actually confirmed a reversal and is now in a new uptrend?

We have that in the BC Bud Corporation (BCBC.CN).

The BC Bud Corporation manufactures, licenses, and sells recreational cannabis products in Canada. It offers cannabis based flower products; edibles, including chocolate-covered coffee beans under the Canna Beans brand name; concentrates under the Solventless Solutions brand; beer-like cannabis infused beverages under the Buds brand name; and lifestyle apparel.

Do not underestimate the BC branding for brand awareness and quality. If you are looking for weed to smoke anywhere in the world, BC has the reputation of having the best. Most people would choose BC over anything else (or so I am told by weed smokers!).

BC bud has been a mark of quality. The best of the best in cannabis. Now, BC Bud corporation will carry that energy, and spirit and bring products to consumers that deserve to be associated with BC’s legacy.

The competitive advantage BC Bud has are its thorough business plan with realistic financials, strategic alliances and distribution models, technological advantages, low overhead and cap ex operations, well defined growth plans, an attractive portfolio of products, and perhaps most importantly, founders with top level management experience in both the Canadian and US markets.

Before I talk about this beauty of a chart above, I would suggest you go back and read my technical playbook on BC Bud over a month ago. The before and after. It has played out as I outlined.

I told readers that the trendline breakout and retest we saw at $0.075 was extremely bullish and was the trigger for a new uptrend. At that time, I spoke about the resistance at $0.10 and how the stock would likely break it as long as we remained above $0.075.

Once we broke $0.10, the pullback for a retest occurred as normally occurs on breakouts. Buyers indeed stepped in on the retest of $0.10 driving prices higher. The stock had a 36% green day on March 9th 2023 as it retested support. With over 250,000 shares traded on that day, we can say there is a wall of buyers at $0.10, and the stock remains in an uptrend as long as we hold above.

The stock is now approaching a major resistance zone at $0.19. In fact, this is the stock’s only remaining real resistance. A close above this could see us test $0.35 and then into new all time record highs. From a technical standpoint, there isn’t much standing in the stock’s way once we break above $0.19.

So yes, you can still make money in cannabis. BC Bud is popping while the cannabis sector as a whole is falling and making new all time record lows. What does this mean? Investors really like what they are seeing with BC Bud, the cannabis company that is doing it right!