While most of the marijuana sector has had a tough 2019, one company that has remained relatively strong throughout the correction is OrganiGram Holdings (OGI), which has continued to show promise in terms of its revenue growth trajectory, and more importantly for trend traders, in terms of it's weekly chart pattern.
OGI has now printed two short hammer candlesticks over the last three weeks and has started this week on a positive note. It sits just above an area of lateral support and is oversold on the stochastic indicator, which is also close to crossing over (a buy signal for some systems). Although there is still room for downside here, there is also a chance that it could just move higher from this level.
Among the big cannabis producers, there is ample evidence that OrganiGram is perhaps the best positioned to turn strong revenue performance into profitability. This seems to be consistent with the strength that we are seeing from a chart perspective. The wild card here is that OGI reports third quarter earnings on July 15th, which could either launch the share price or perhaps bring it back into line with other faltering weed companies. Nonetheless, I see this as relatively good short-term trade set-up in the washed out pot sector and will be watching it closely over the next week.