MJ signaling oversold conditions in the cannabis market

Cannabis stocks have corrected dramatically despite strong fundamentals across the industry.

Looking at the MJ ETF gives some indication of the oversold state of the broader cannabis market. The RSI is low and the ETF is currently trading beneath its 9-day moving average. Almost every single time this has happened in the past, the ETF has bounced back.

There's every reason to be bullish on the sector and this correction has created a buying opportunity not just in ETFs but in many individual cannabis stocks as well.