The stock we are highlighting today was a lot higher than it is today.
Leafly Holdings, Inc. (LFLY) owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. It offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers and brands; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications.
In the last 52 weeks, the weed-related stock has been as high as $11.58 and as low as $4.18. (1) LFLY’s chart suggests that Leafly could recover some of those losses. The stock trades at $4.60 as we type. The stock fell off a cliff in early June and drifted lower achieving its 52-week low on July 5th.
The stock has flattened out since and showing three signs that it might be ready to reverse course.
- Its negative trendline has been broken
- Relative Strength is pointing northward
- A bullish MACD crossover
In our technical opinion, LFLY offers traders the potential for a 3.9 parts return for 1 part risk. On the upside, the first resistance level is $5. The next level higher is $5.50 and then $6.36 as our short-term upside target.
On the downside, we cut losses at $4. That’s $0.60 for its current price and $2.36 potential upside from Leafly’s current price.
Day/Swing trading is very risky and only appropriate for investors who can afford to lose money.
Rich Meyers
Investing Trends
1 – https://finance.yahoo.com/quote/LFLY?p=LFLY
