Cannabis Stocks Technical Analysis – February 13, 2019

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 – Januar 20

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)

Weekly Chart – Chart created with Tradingview

Short-term

Neutral

Mid-term

Neutral

Long-term

Buy

Canadian cannabis producer Tilray was rejected by the resistance at $100 and formed a series of higher lows since then. Due to the fact that the trendline resistance was broken, it turned into a support which successfully held. The trendline support of the falling wedge pattern, which is around $60, acts as additional support.

Aurora Cannabis (NYSE: ACB)

Weekly Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Buy

Long-term

Buy

Aurora successfully bounced off the support at around $5 and rose all the way up to the $8 mark, where it then faced rejection by the resistance. The steady increase in volume during the sideways movement is a bullish sign. Due to a bearish divergence in the daily RSI, it seems very likely that a correction wave will take place. Aurora will most likely decline to the golden pocket zone at $6. Assuming bullishness, a bounce off this mark and a continuation of the uptrend is likely. If it does not bounce, it will find its next support at around $5.

Canopy Growth Corporation (NASDAQ: CGC)

Weekly Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Buy

Long-term

Buy

Canopy is giving us a very similar setup. While the volume increased tremendously throughout the end of 2018 and the beginning of 2019, it seems likely that a small correction wave will take place. Canopy will most likely bounce off the golden pocket zone located at the support ranging from $34 to $38 where the 2.5-year trendline acts as additional, major support. If the triple-support fails to hold, the bullish setup is denied and Canopy will most likely decline to its next support at around $25.

Cronos Group (NASDAQ: CRON)

Weekly Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Buy

Long-term

Buy

Cronos surged incredibly since my last analysis and shelters an amazing trading opportunity right now. Cronos will most likely decline to the support range at $14, which happens to be located at the golden pocket zone and, simultaneously, at the 2.5-year long trendline support. It is likely that the support between $12.5 and $14 will hold and result in a continuation of the uptrend. If not, the next support will be found at around $9.

GW Pharmaceuticals (NASDAQ: GWPH)

Weekly Chart – Chart created with Tradingview

Short-term

Sell

Mid-term

Buy

Long-term

Neutral

GW Pharmaceuticals broke the resistance at $137 which now acts as support. After being rejected by the resistance at around $150, GW Pharmaceuticals quickly bounced off the newly established support at $137. That being said, it is ranging between support and resistance, which is a quite neutral setup.

 

The S&P 500 index surged by 13 percent since the beginning of the year whereas Cronos rose by an incredible 160 percent.

Moreover, at the time of writing, and according to the global market capitalization on Coinmarketcap, Bitcoin is currently located at around $3,600.

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