Cheap Stocks In A Strong Sector: Cannabis Edition
Justin Smyth | Nov 14, 2017 12:31PM ET
Cannabis stocks are on fire as Canopy Growth (TO:WEED) was the first stock to break out. A hot sector can provide a lot of trading opportunities. Instead of chasing the leaders, it's often smart to buy the laggard, which will get pulled higher by the large amount of money pouring into the sector. This works especially well with commodity sectors where all companies in a sector essentially produce the same product.
OrganiGram Holdings (V:OGI) and Supreme Pharmaceuticals (V:FIRE) are two good examples and I bought them both in anticipation that they will follow the leaders in the sector higher.
With both stocks you can see clear resistance and support levels – just like the leading cannabis stocks. But when I bought them, the stocks had yet to break above resistance. Both had great volume and OrganiGram had a nice consolidation at the high end of the range leading into today’s breakout.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.