Cannabis Stocks Near Breakout: Sir Upside's Chart Analysis

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The cannabis sector is flashing a series of compelling technical signals, with several major U.S. operators trading just under crucial resistance levels.The overarching message: the sector is at a pivotal juncture, and the charts suggest news—likely positive—could be on the horizon.

MSOS ETF and High Tide: Consolidation Patterns Point Up

The AdvisorShares Pure US Cannabis ETF (MSOS) was the first chart reviewed. Sir Upside noted that the ETF closed above a key short-term high from late June, signaling growing momentum. The price is still below a major descending trend line, which the host identifies as the primary resistance to break. He expects a possible backtest of that line, but the SMA structure—with the 20-day above the 200-day and price above all key moving averages—suggests an eventual upward resolution.

High Tide (HITI) is forming a large symmetrical triangle on the daily chart. The stock has been hugging the upper boundary of a parallel channel but has shifted to trade within a broader triangular pattern. Sir Upside sees a fourth test of the top resistance as likely, and a break could lead to a double from current levels. A golden cross of the 20-day SMA over the 200-day SMA, combined with a lack of a recent retest, sets up for a potential earnings-driven move. The immediate hurdle sits around $3.60.

Village Farms (VFF) and Green Thumb (GTBIF) Show Bullish Signals

Village Farms (VFF) closed above its 200-day SMA for several consecutive days, a sign of strength after three prior rejections. The stock has held the 200-day as support, and the MACD is curling up. Sir Upside notes the next resistance zone is near $3.60, and if momentum continues, a run toward that level is plausible. He called the recent price action "extremely bullish."

Green Thumb Industries (GTBIF) is also building a symmetrical triangle, with multiple trend lines acting as overhead supply. The immediate test is around $8.82–$8.85, where sellers have historically stepped in. The host warned that traders should treat that zone as a potential sell area, but a breakout above the upper trend line could trigger a stronger uptrend. If not, the stock might trade sideways until the triangle reaches its apex.

Curaleaf (CURLF) and Verano (VRNOF) Approach Key Breakouts

Curaleaf (CURLF) presents a textbook downtrend that has evolved into a falling wedge. Price has been respecting two downward trend lines and a horizontal support level. The stock is closing in on the top resistance, with SMAs in a healthy alignment and MACD curling upward. Sir Upside is encouraged by the setup, noting that a breakout from such long-term patterns often leads to strong upside runs.

Verano (VRNOF) closed the week just above a short-term uptrend line, but the volume on that close was not overwhelming—a minor red flag. The immediate goal is to hold that level; if successful, a move toward $10 is possible. The 200-day SMA at $8 provides a robust floor. The host sees a likelihood of eventually breaking past the resistance, though a rejection could lead to a drop toward the $8 support zone.

SNDL, Tilray (TLRY), and Canopy Growth (CGC) Present Mixed Pictures

SNDL has seen a strong break back into its historical "loading zone" after several failed attempts. The last three sessions saw a break, backtest, and upside move, bringing the stock to the top of that zone. A break above could lead to a test of $1.48. See similar bullish momentum building across the sector.

Tilray (TLRY) is holding above its 50-day SMA after a recent backtest, which the host interprets as bullish. With the 200-day SMA at $6.65, there is significant room to run. The next step is to break the 20-day SMA, and if the blue trend line gives way, a move toward the upper resistance is likely—though that zone could serve as a temporary top.

Canopy Growth (CGC) stands out as the bearish outlier. It closed above its 50-day SMA only to get rejected twice, signaling weakness. Sir Upside sees nothing attractive in CGC's chart right now, with a potential slide into negative territory (relative to its support levels).

Coinasity's Take

Sir Upside's analysis reveals a sector at a technical crossroads: most major U.S. cannabis operators are within striking distance of key resistance levels, while Canadian names like Canopy Growth lag. The alignment of these setups suggests a sector-wide catalyst could be on the way—perhaps legislative or earnings-driven. However, the lack of volume on some breakout attempts (like Verano) and the historical difficulty of breaking through long-term resistance should temper FOMO. A break above these levels could signal a sustained rally, but traders should wait for confirmed closes rather than anticipate them.