Canadian cannabis stocks ended the week on a high note and many investors are closely watching how this sector trades off the open.
Over the last few months, we have been monitoring trading volume and momentum as Canadian licensed medical marijuana producers have come well off its summer lows. We have been favorable on this trend and remain bullish on the Canadian cannabis sector.
Today, we have highlighted five Canadian licensed medical marijuana producers and have provided insight into how these stocks have performed and where we see them going from here.
Canopy Growth (WEED.TO) (TWMJF)
Canopy Growth rallied more than 30% last week and this came after Constellation Brands (STZ) acquired 9.9% of the company for approx. $250 million (CAD). The market responded favorably to this and the shares have been trading at overbought levels.
When compared to its daily average over the last month, Canopy’s daily average over the last week is 131% higher. Canopy has been upgraded by several brokerage firms and we remain bullish on the shares.
Aurora Cannabis (ACB.TO) (ACBFF)
Aurora Cannabis continues to execute on its business plan and we are favorable on this Canadian licensed medical marijuana producer. Aurora has cannabis operations and investments around the world and the company just closed a $75 million brokered private placement.
Shares of Aurora are trading right below overbought levels after the shares rallied more than 10% last week. Volume has also significantly strengthened and volume during the last week was 35% higher than it was over the last month.
MedReleaf (LEAF.TO) (MEDFF)
Last week, MedReleaf (LEAF.TO) rallied approx. 20% and the shares have been trading at overbought levels during this time. This Canadian medical marijuana producer is one of the largest in the country and we are bullish on the long-term outlook.
When compared to its daily average over the last month, MedReleaf’s daily average over the last week is 91% higher. During the last month, he shares have rallied almost 50% and we are keeping an eye on how MedReleaf trades from here.
Emblem (EMC.V) (EMMBF)
Emblem is one of the only licensed Canadian medical marijuana producers to be trading near oversold levels and we are cautiously optimistic with the firm. Last week, Emblem CEO Gord Fox stepped down and was replaced by Nick Dean. The market has not responded favorably to this and the shares fell more than 11% last week.
When compared to its daily average over the last month, Emblem’s daily average over the last week is 35% higher. We will keep an eye on how Emblem trades this week and see if the shares can reverse course and push higher.
CanniMed Therapeutics (CMED.TO) (CMMDF)
CanniMed Therapeutics edged lower on Friday but the shares are still trading at overbought levels after this slight drop. The shares performed very well last week and were up more than 11% during this time.
When compared to its daily average over the last month, CanniMed’s daily average over the last week is 70% higher. We are bullish on CanniMed and favorable on its leverage to international markets and smokeless cannabis products.
Source: Technical 420