Canada Passes Recreational Use of Marijuana
The Cannabis Industry, in its latest Annual Report, highlighted sales of medical and recreational marijuana trending higher in 2018 and beyond as the more countries and states legalize the use of cannabis. That was before Canada passed the recreational use of marijuana into law last night.
Sales of medical and recreational marijuana should reach $4.75 and $6 billion this year, as the annual report indicates. By 2020, medical and recreational marijuana use is forecasted to double. Source: Statista.com
Source: Noted
Advancing with the trend, Canopy Growth (CGC) recently listed on the NYSE, legitimizing the company in the US. Note the MarketSmith chart shows funds continue adding CGC to their portfolios.
Technically speaking Canopy Growth is breaking out in pre-market trading. Price action is firm at 33.50 ~ 34.00 per share.
The Canadian market lists Canopy Growth as WEED.TO and WEED.CA.
Technically speaking, a measured move of 16 – 18 CAN dollars is possible. Use the depth of the recent consolidation pattern as your targets. RSI is climbing as well and will most likely stay embedded above 70 for a few days as more traders buy shares.
Bollinger bands are tight and ready to explode this morning. This move higher will push price action into an area of zero supply, as the stock trades at ATH.
We will be adding to our existing position this morning after initial profit taking creates a flag or early ABCD pattern. If neither appears, look for the stock to continue moving higher, forming the first leg of a potential ABCD pattern into the lunch time frame.
Join us at 9:20 AM during the LIVESTREAM broadcast this morning for more on the cannabis industry.
Happy Trading,
Vinny
https://theclosingprint.com/CV_Blog/marketsmith-top-five-prospective-candidates/
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