Marijuana/Hemp/Pot Stocks ~ Canopy Growth (NYSE:CGC) Analysis and Signal

Many of you have asked me about Marijuana/Hemp/Pot Stocks and my thought on their future. There are many things to consider when it comes to these types of stocks, but my ultimate outlook on their future is that they will have a large percentage in increased worth over the next 10 years.

If you are looking to add some additional stocks to your trading portfolio, choosing a percentage to contribute to these stocks for a long term investment may really pay off.

Here are my thoughts:

Much of the focus in 2018 was toward Canada, due to the legalization of recreational marijuana. However, many states in the United States have also followed this trend and there are many more focused on the legalization in the near future

The legalization of hemp (cannabis that contains low levels of the psychoactive compound THC) could open the way for a much larger hemp-based cannabidiol (otherwise known as CBD) market in the U.S.

There’s even a possibility of a revisal to federal laws recognizing the authority of the individual states to enforce their own marijuana laws.

With that said…I would like to share with you some of the top U.S. and Canadian stocks I will add to my portfolio in 2019.

Top Canadian Pot Stocks: Stock #1 –
Canopy Growth (NYSE:CGC)

Canopy Growth claims the highest market cap of any Canadian marijuana stock. The main rival to this company is Aurora Cannabis, however this might not be an issue at all with Constellation Brands investing $4 billion into the company. This gives a huge competitive advantage with their expertise in building successful consumer brands.

The Canadian recreational market should gain momentum this year overall. With the finalization of cannabis edibles, Canopy and Constellation will be able to launch new cannabis-infused beverages.

Canopy Growth co-CEO Bruce Linton said in a press release that the company “will participate in the American market now that there is a clear federally permissible path to the market.”

Brightfield Group projects that the U.S. hemp-based cannabidiol (CBD) market will skyrocket to $22 billion by 2022

Canopy Growth CGC 35

CGC is currently around $48-49/stock. The range has fluctuated and is experiencing some resistance at 50.00. There was a cross to the downside of the MACD (9,12,26).

Who knows where price will go at this point, $48 per stock is still quite affordable when we look at the possibilities of growth, but when simply looking at basic technical analysis and historical data, my magic number is 35.00.

What does this mean?

If you are new to trading stocks, this simply means I am going to watch for a pullback (I have an alert setup on my TD Ameritrade account) when price comes back to the 35.00 level, I plan on picking up a good chunk of these stocks.

What if price doesn’t come back to 35.00?

Well…then I’m out of luck! But my experience has been that when trading any asset, have rules to follow, create a plan for yourself and follow your plan to a T.

There’s my plan and thoughts...check back for more of my top pot stocks for U.S. and Canada in the upcoming weeks!

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