Cannabis Stocks Technical Analysis – December 2, 2018

Cannabis Stocks Technical Analysis provided on Strain Insider is for information purposes only. Signals that are given in this article are solely based on probabilities. Every trading and investment move involves risk, you should conduct your own research when making a decision. Strain Insider and its authors are not accountable for any trading decisions you make.

Cannabis stocks have proven to be a highly promising investment and trading vehicle during 2018. With stock prices that increased by up to four-digit percentages and the improvements of medical and recreational cannabis legislation around the globe, the legal marijuana industry can be considered as one of the most promising in the world. In this weekly technical analysis series, Strain Insider aims to provide an outlook on five of the most relevant cannabis stocks.

Related: Cannabis Stocks Technical Analysis – November 2018

This week’s piece features Aurora Cannabis Inc., GW Pharmaceuticals Plc., Tilray Inc., Cronos Group Inc. and Canopy Growth Corporation.

Major news this week:

Tilray: Cannabis producer Tilray misses on both sales and earnings

Aurora Cannabis: Aurora Cannabis to Ship Medical Cannabis to the Czech Republic

Canopy Growth: Canopy Growth Completes Agreement With MediPharm Labs

Cronos Group: Cronos Group Shows 186% Growth in Revenue

GW Pharmaceuticals: GW Pharmaceuticals Announces Second Positive Phase 3 for new CBD drug

Tilray (NASDAQ: TLRY)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Neutral

Long-term

Buy

Canadian cannabis producer Tilray was sitting at $116 last week and tried to break the resistance at $118.35. Like previously assumed, it was rejected from the golden ratio which resulted in a 15 percent loss. Having said that, Tilray is about to find its support between $99.66 and $95, where it is likely to bounce off. It’s currently forming a falling wedge which will act as the next support if the current support fails to hold.

Aurora Cannabis (NYSE: ACB)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Buy

Long-term

Buy

Aurora Cannabis Inc. dropped by 12.24 percent since our last analysis, which resulted in a quick recovery of 11.55 percent because of the support zone between 5.15 and 5.5. So far, the support is holding and, due to the bounce, the price formed a lower low while the RSI is performing a higher low, which is indicating a bullish divergence, making an increase in price very likely. The next resistance is between $7.74 and $8.41 and, since the support held so far, we might see a re-test of the resistance which makes a growth by 47 percent possible.

Canopy Growth Corporation (NASDAQ: CGC)

Daily Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Neutral

Long-term

Buy

With it being evaluated at $33.56, Canopy is exactly where it was the week before. However, it tried to break the resistance and faced rejection, taking an 8.93 percent loss into account. With a series of higher lows in the smaller time frames, it seems likely that it will do a re-test on the resistance again. An increase of 2 to 10 percent seems likely before it faces rejection in the resistance zone. While the trendline is acting as an additional support, the next support zone underneath is between $24.50 and $26.50.

Cronos Group (NASDAQ: CRON)

Daily Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Buy

Long-term

Buy

The price of Cronos didn’t change much during the last week. Cronos is still engaging with a strong resistance between $8.86 and $10. With it currently sitting at $9.15, it still has an upward growth potential of about 10 percent before a rejection by the resistance gets very likely, since the RSI is about to face a resistance at this point too. However, if it breaks through, the price could climb to its most recent high at $12.94 and if it doesn’t, the trendline will still act as a major support.

GW Pharmaceuticals (NASDAQ: GWPH)

Daily Chart – Chart created with Tradingview

Short-term

Neutral

Mid-term

Buy

Long-term

Neutral

GW Pharmaceuticals had quite a calm week, with a maximum volatility of a little less than 12 percent. It acted as suspected in the previous technical analysis and dropped five percent to the trendline support, where it then bounced 8.3 percent to the upside. Since then, it is ranging between the resistance at $128.5-$130 and the trendline support.

That being said, the trendline still acts as a major support and, because it previously held, the uptrend is still intact. Additionally, the Relative Strength Index (RSI) picked up some steam this week and is currently sitting at 39, two points higher than in the previous week. It’s likely that we will see some upward movement. However, we might see a re-test to break the resistance.

In comparison to the cannabis stocks, the S&P 500 index had a bullish week so far, increasing by 3.24 percent.

Moreover, at the time of writing, and according to the global market capitalization on Coinmarketcap, Bitcoin slightly recovered about $600 from its recent drop to around $3500 and is currently sitting at $4100.

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