Cannabis related stocks have the potential to gain a lot if we see new breakthroughs in studies on cannabinoids, especially on CBD (and other non-psychotropics). Public exposure to CBD is widening, with more large chain retail shops stocking them on their shelves.
The cannabis business may be a tricky one for growers and sellers, with various risks in product contamination and regulations. This makes picking winning stocks in these areas harder, but a lot of these variables are removed by buying stocks in companies that will enable these growers/sellers to do business. Labs is one of the key areas for this.
Even if growers/suppliers have bad products that can not be sold, they will still pay the bill to the lab to tell them that. There are currently certain amounts of trace THC allowed in products and these require lab verification to be compliant - and lab reports are usually demanded by retail buyers to ensure quality of product. The labs are the backbone of this business.
From a technical viewpoint CRLBF has now had it's first run up and crashed. It has traded almost back to where it started. Now it's managed to regain the first of the important fib retrace levels. This may be signs the stock has bottomed out, and a new up trend into a higher high could be seen in the future.
Swing Trade : Buy CRLBF 6.68. Stop Loss 3.2. Target 17.
If this move starts to happen, I will post additional short term trades to follow the momentum through days/weeks
The cannabis business may be a tricky one for growers and sellers, with various risks in product contamination and regulations. This makes picking winning stocks in these areas harder, but a lot of these variables are removed by buying stocks in companies that will enable these growers/sellers to do business. Labs is one of the key areas for this.
Even if growers/suppliers have bad products that can not be sold, they will still pay the bill to the lab to tell them that. There are currently certain amounts of trace THC allowed in products and these require lab verification to be compliant - and lab reports are usually demanded by retail buyers to ensure quality of product. The labs are the backbone of this business.
From a technical viewpoint CRLBF has now had it's first run up and crashed. It has traded almost back to where it started. Now it's managed to regain the first of the important fib retrace levels. This may be signs the stock has bottomed out, and a new up trend into a higher high could be seen in the future.
Swing Trade : Buy CRLBF 6.68. Stop Loss 3.2. Target 17.
If this move starts to happen, I will post additional short term trades to follow the momentum through days/weeks