While the mere mention of it will almost assuredly stir up another heated debate, if something needs to be said, then it needs to be said.... with all the proper caveats and clarifications, of course. Here goes. Latteno Food Corp. (OTCMKTS:LATF) is a buy again, after its pullback earlier in the week, as LATF is a compelling alternative for anyone who missed the first round of marijuana mania by not buying big runners like Tranzbyte Corp. (OTCMKTS:ERBB) or Medical Marijuana Inc. (OTCMKTS:MJNA).



Just to head off the counter-arguments at the proverbial pass, this isn't to imply that Latteno Food Corp. is a bulletproof, completely unquestionable business venture. This also isn't to say that Latteno Food is a more credible company or opportunity compared to Medical Marijuana or a name like Tranzbyte. It's just simply to say that, right now, compared to ERBB or MJNA or most of the other stocks in the cannabis arena, LATF has dropped a lot of bullish hints that say there's more upside waiting to be doled out here.



The daily chart of LATF tells the tale, with two big hints. The first hint is all the bullish volume we've seen since late January. Those tall green bars at the bottom of the image? That's the volume seen in days the stock moved higher. Yes, we've seen bearish days since late January too, but the volume on most of those days was considerably lower than the volume behind the bullish days surrounding them. Point being, there are more interested buyers than sellers here, even if they only come out of the woodwork on an intermittent basis.



The second big clue saying Latteno Food Corp. is back in a bullish mode again is the shape of Wednesday's bar. We started about even with Tuesday's close, pulled back under the 20-day moving average line (blue), only to snap back in a huge way and close at the high for the day... a day we made an 18% gain for the day. The deep low and subsequent much higher high suggests that we saw a big pivot on Wednesday - a swing from a net-bearish environment that drove shares lower for three days to a net-bullish environment that looks like it's sparked a new rally. Given the stock's behavior since January, however, odds are good that this bullish reversal should get at least a few days' worth of traction. It may even be enough to eclipse the prior peak of $0.16. That would translate into a 60% gain, at least. Take a look.

With all of that being said, it needs to be made clear that this is a trade and not an investment.



One thing that's been called into question with LATF is the company's credibility, relative to more transparent stocks in the same space, such as the afore-mentioned Medical Marijuana Inc. or Tranzbyte Corp. (another SmallCap Network community member points out some great arguments against trusting LATF here and here). Fair enough. But, truth be told, this near-term bullish outlook has next to nothing do with the fundamentals, and nearly everything to do with the technicals... though this call also fully acknowledges that much of the reason LATF is on the move now is the hype that also drive MJNA and ERBB higher at various over the past year and half. Their hype-induced surges didn't always last either. Still, what a great move this stock could dole out while the dust is still settling.

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