A bright spot in Cannabis Stocks
Cannabis stocks have seen major downside last year. This year some stocks have seen a reversal around mid-January 2020 and some have been rising slowly since later November. However, Cannabis stocks make the top of the daily Robinhood list of popular stocks. Is this reversal for real or a short term change? we will analyze a few stocks in this article.
The industry is struggling to recover after a few roaring years of success. There are many reasons for the decline — limited market growth, access to strategic capital and a crowded market. I don’t see an immediate change in the long term industry trends and there are no promises that the situation would improve however, the stocks are providing some great swing trade opportunities. Let’s take a peek at them.
Aurora Cannabis (ACB) has been lately caught up in several US lawsuits. The stock has performed poorly and continues its downward trend. Looking at bright spots the stock has recently bounced back almost 36% from it’s low of US$ 1.50 on Jan 13. ACB closed today at US$ 2.05. ACB stock short term potential target is US$ 2.36 — gain of 55%.
Canopy Growth (CGC) has also struggled since April 2019 when the stock price was in the early 50s. The company sees a bright spot after almost 9–10 months of price decline. The stock has closed over its potential short term target price of US$ 23.65. CGC saw an intermediate low of US$18.50 on Dec 31 and closed today at US$ 24.89 with a gain of 34.54%
Corbus Pharmaceuticals (CRBP) also had been in a downtrend since March 2019. However, in a reversal CRBP prices have been steadily rising since mid-Nov last year after the company delivered surprise earnings and revenue. The stock closed at US$6.95 rising from a close of US$ 4.18 on Nov 14 a gain of 66%.
It is exciting to see some activity in cannabis stocks after a prolonged period downward slide. The investors should look at short term trading opportunities and accumulate profits.
The charts for this article have been generated by Cannabis20 for US markets product by priceSeries.
