Send me real-time posts from this site at my email
Fan Yang

GW Pharmaceuticals (GWPH) Still Has Bullish Outlook Despite Sharp Pullback

Canada officially legalizes weed on 10/17. Marijuana companies have been all the hype, resembling some of the rallies we saw in the crypto space in late 2017. GW Pharmaceuticals, a relatively established European company, has been trading with a more cautious hype. Let me explain.

GWPH Daily Chart

(click to enlarge)

Regression to the Mean:
- Note that GWPH has been consolidating throughout 2017, but started to percolate in early 2018. Eventually, price broke above the previous consolidation.
- Since the breakout, price has been holding above the 200-day simple moving average (SMA), which is a good sign for the bullish scenario.
- In September and October so far, we saw a sharp rally followed by a sharp pullback. Price is now near the breakout levels. 
- Price is right around the 200-day SMA. Furthermore, the RSI is still holding above 40, which is a sign that the prevailing bullish momentum has been preserved. 
- These are signs that the market is cautious and already faded the hype. BUT, the overall trend continues to be bullish.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue