(MSOS) AdvisorShares Pure US - Ratings and Ratios

The AdvisorShares Pure US Cannabis ETF is an actively managed exchange-traded fund that focuses on investing in US-based companies with significant revenue derived from the marijuana and hemp industry. The funds investment strategy involves allocating at least 80% of its net assets to securities of companies generating at least 50% of their revenue from cannabis-related activities, as well as derivatives with similar economic characteristics.

The fund is heavily concentrated in the pharmaceuticals, biotechnology, and life sciences industry group within the healthcare sector, with a minimum investment of 25%. This concentrated approach is characteristic of a non-diversified fund, which may result in higher volatility and a greater reliance on the performance of a smaller number of holdings.

From a technical analysis perspective, the current price of MSOS is $2.60, with nearby resistance levels at $2.7 and $3.5. The short-term moving averages (SMA20 and SMA50) are $2.64 and $2.63, respectively, indicating a relatively stable short-term trend. However, the long-term SMA200 is $4.73, suggesting a significant decline from the funds longer-term average price. The Average True Range (ATR) is 0.21, or 8.18% of the current price, indicating moderate volatility.

Considering the current price is near the 52-week low of $2.09 and significantly below the 52-week high of $9.78, there is potential for a rebound. With an AUM of $392.66M, the fund has a substantial asset base. If the cannabis industry continues to grow and the funds holdings perform well, MSOS could potentially retrace some of its losses. A forecast based on the technical and fundamental data suggests that if the price breaks through the resistance level at $2.7, it may continue to rise towards $3.5. However, failure to break through this level could result in continued consolidation or a decline.