Cannabis Stocks Technical Analysis – December 9, 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 soon to supply Mexico with medical marijuana

Canopy Growth: Canopy Growth acquires Volcano Vaporizer inventor Storz & Bickel

Cronos Group: Marlboro creator buys 45% of Cronos Group in a $2.4 billion mega-deal

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

Related: Cannabis Industry Weekly Roundup – December 8

Tilray (NASDAQ: TLRY)

Daily Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Neutral

Long-term

Buy

Canadian cannabis producer Tilray declined all the way down to the $95 mark, where the support held perfectly and Tilray managed to bounce up by 10.40 percent. If it breaks the trendline resistance of the falling wedge pattern, this would be a very bullish confirmation and it would most likely result in an uptrend all the way up to $135-$150 range, where Tilray finds its next resistance. Having said that, Tilray’s support between $99.58 and $95 remains intact.

Aurora Cannabis (NYSE: ACB)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Buy

Long-term

Buy

Aurora Cannabis Inc. dropped by 20.90 percent, down to $4.71, which was slightly below the support levels. Although the support seemed to be broken for a short period of time, it resulted in a quick recovery of almost 26 percent. Thus, the support zone between $5.15 and $5.65 is still valid and with the current price at $5.75, Aurora finds its support slightly below. With the Relative Strength Index (RSI) indicating bullish divergences, the price will most likely increase even further. Additionally, the Moving Average Convergence Divergence (MACD) performed a bullish crossover which might result in a retest of the resistance between $7.76 and $8.42.

Canopy Growth Corporation (NASDAQ: CGC)

Daily Chart – Chart created with Tradingview

Short-term

Buy

Mid-term

Buy

Long-term

Buy

Canopy faced rejection at the resistance at $35, which resulted in a heavy price drop of 20.30 percent. However, the trendline support succeeded to hold and the price quickly recovered by 16.19 percent. With it sitting at $31.40, Canopy is between the support and resistance and, due to the fact that the RSI is showing bullish divergences while the MACD performed a bullish crossover, the price will most likely re-test the resistance between $35 and $36.

Cronos Group (NASDAQ: CRON)

Daily Chart – Chart created with Tradingview

Short-term

Neutral

Mid-term

Buy

Long-term

Buy

Cronos had a fantastic week. It surged by almost 64 percent until it faced rejection at the resistance at $14.15. With the RSI indicating overbought regions, we might see a correction down to the prior resistance, with now acts as a strong support between $8.83 and $9.86.

GW Pharmaceuticals (NASDAQ: GWPH)

Daily Chart – Chart created with Tradingview

Short-term

Neutral

Mid-term

Buy

Long-term

Neutral

GW Pharmaceuticals was rejected by the resistance at $130, which resulted in a decline of 9.17 percent. However, the trendline succeeded to act as a support and the price quickly recovered the loss. With the MACD currently performing a bullish crossover, we might see another re-test of the resistance.
That being said, the trendline still acts as a major support and, because it previously held, the uptrend is still intact.

In comparison to the cannabis stocks, the S&P 500 index had a bearish week so far, declining by 3.11 percent.

Moreover, at the time of writing, and according to the global market capitalization on Coinmarketcap, Bitcoin lost another 12 percent since last week and is currently located at around $3,000.

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