Cannabis Stocks Technical Analysis – December 17, 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.

Related: Cannabis Industry Weekly Roundup – December 8

Tilray (NASDAQ: TLRY)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Neutral

Long-term

Buy

Canadian cannabis producer Tilray declined by 25 percent and broke the support at $95 which now acts as a resistance. The price settled slightly above the $70 mark, where the trendline support held perfectly and Tilray managed to bounce up by more than 13 percent. If Tilray makes a wave up to the trendline resistance of the falling wedge pattern and breaks it, this would be a very bullish confirmation and it would most likely result in an uptrend all the way up to the $135-$150 range, where Tilray will find its next resistance. With the RSI indicating oversold regions, chances are high that we will see a re-test of the $95 mark.

Aurora Cannabis (NYSE: ACB)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Buy

Long-term

Buy

Aurora Cannabis Inc. didn’t show much volatility in the last week, however, it rose by 33 percent from its recent low, up to $6.22, which was slightly above the support levels. Thus, the support zone between $5.15 and $5.65 is still valid and with the current price at $5.86, Aurora finds its support slightly below. With the current outlook, it seems like the support is successfully holding, which gives bullish prospects for the short-term. Additionally, the bullish crossover of the Moving Average Convergence Divergence (MACD) remains intact which might result in a re-test of the resistance between $7.3 and $8.

Canopy Growth Corporation (NASDAQ: CGC)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Buy

Long-term

Buy

Canopy showed very little price movement this week, with a volatility of only 12 percent. The trendline support remains intact and, if it’s broken, the next support will be found between $24.5 and $26.50. With the MACD withstanding the re-test of a bearish crossover two times, the bullish trend stays valid. Moreover, with the RSI indicating bullish divergences, it seems likely that a re-test of the resistance at $35 could take place very soon.

Cronos Group (NASDAQ: CRON)

Daily Chart – Chart created with Tradingview

Short-term

Neutral

Mid-term

Buy

Long-term

Buy

Cronos faced rejection at the resistance and dropped by 21 percent, down to $11.14. This is exactly at the 0.382 fib level, where it bounced by more than six percent. With the current outlook, the uptrend seems intact and we might see a re-test of the resistance at $12.84. If the 0.382 fib level should fail to hold, the next support will be found between $9.86 and $8.83.

GW Pharmaceuticals (NASDAQ: GWPH)

Daily Chart – Chart created with Tradingview

Short-term

Neutral

Mid-term

Buy

Long-term

Neutral

GW Pharmaceuticals is ranging between the resistance and the trendline support. With less than ten percent volatility, it seems likely that the sideways movement will continue until either the support at $118 fails to hold or the resistance at $128 gets broken. However, the MACD is still indicating bullishness since the crossover is still valid. This makes a re-test of the resistance more likely.

In comparison to the cannabis stocks, the S&P 500 index had a bearish week so far, declining by another 3.4 percent.

Moreover, at the time of writing, and according to the global market capitalization on Coinmarketcap, Bitcoin lost another 6 percent since last week and is currently located at around $3,000.

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