We traded two of our favorite cannabis stocks as they rallied higher during the Monday trading session. Both stocks closed near the high of the day. Price action is bullish and shorts are numerous providing a tailwind for a continuation day.
GMP analyst Martin Landry upgraded Canopy CGC, +0.46%WEED, +7.93% to buy from hold, after the company last week bought the rights to acquire U.S. multistate operator Acreage Holdings Inc. as soon as cannabis is legalized in the U.S. The stock soared 7.8% in afternoon trade.Read more on CGC upgrade here:
Cannabis Production and Canopy Growth
This cannabis stock has enough shorts to propel price action back to recent highs. Pre-market size (Level II) does not start till 49.00.
Canopy Growth (CGC) achieved its first hurdle as it broke above this descending trend line yesterday. Volume is above average. Once above 49.00, the above mentioned Level II zone, we see VBP resistance confirms. If price action gets above 49.00 today we will consider holding shares for a visit with “bagholders” at 51.81.
CGC shows MACD above its signal line. Bulls are in control.
Cannabis and Leaf Tobacco Distribution
Pyxus International Inc. (NYSE:PYX) an agricultural company, engages in the provision of various agricultural products, ingredients, and services to businesses and customers. It offers products in the leaf tobacco, e-liquids, industrial hemp, and cannabis industries.
Pyxus International 13G Shows Morgan Stanley Raised Stake In the Company
We’re looking for a follow-through day. RSI turned from oversold, my favorite setup. Volume picked up as shorts undoubtedly covered some of their positions. It will take 3 days to cover. See shortsqueeze.
In addition, resistance levels are noted overhead at 24.30, then the descending trend line at 28.00 (+/-).
In other news, Pyxus International Inc. (NYSE
Other cannabis stocks are moving as well. DM me in the trading room if your favorite cannabis stock starts moving today.
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Happy Trading,
Vinny
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