After struggling in the second half of 2020, cannabis stocks are off to a hot start in 2020.
The cannabis stock fund Alternative Harvest (MJ) is up 11% in the first two weeks of the year.
Many individual stocks are up even more.
Canopy Growth Corp (WEED, CGC) is up 25% in 2020 and up 65% from the 52-week low in late November. On the chart Canopy has broken the downtrend that was in play in the second half of 2019 and has developed a strong level of support around $25. This looks like a reversal and the beginning of a new trend higher.
5 Reasons Cannabis Stocks are Rallying in 2020
I see five reasons cannabis stocks are off to such a strong start in 2020.
- Cannabis stocks were deeply oversold after struggling in 2019.
- Cannabis sales in Canada are accelerating now that extracts such as edibles and vapes are legal.
- Illinois’s cannabis market is off to a very hot start, with over $20 million in sales in the first two weeks.
- Up to 11 US states will vote on legalizing medical or recreational cannabis in 2020.
- Worries over the ‘vape crisis’ are washing away.
When you add it all together the cannabis sector is benefiting from some very powerful forces. And looking forward I am expecting more gains.
What Should We Expect Moving Forward?
Looking forward I am expecting more gains.
Despite the strong start to the year cannabis stocks are still deeply oversold with a flurry of positive catalysts on the horizon.
If anyone has questions feel free to get in touch.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Michael Vodicka owns shares of Canopy Growth Corp (WEED) at time of writing.