The Cannabis market is flourishing, especially in Europe. However, most of the major cannabis stocks seem to have been in an overvaluation hype bubble, which might have popped already. Thus, a trend switch might be around the corner and investors of cannabis stocks might see positive returns very soon again.
Tilray’s overall trend remains bearish as long as Tilray stays below the 50-day-EMA. Just recently, Tilray (NASDAQ:TLRY) reached almost the opening prices back in August 2018 which simultaneously formed a bullish divergence in the RSI. The divergence was quickly followed by a rise of 35 percent in the course of a single week. While the MACD still indicates bearishness, Tilray has still good chances to go for a re-test of the 50-day-EMA, which would lead to another 14 percent rise in price. Considering the very low levels Tilray has reached by now, it could be that the bearish trend comes to an end very soon and Tilray breaks the 50-day-EMA.
Canopy Growth (TSX:WEED) reached oversold regions in the RSI when it bounced off the golden ratio level at around $22. The golden ratio is a very important level and not seldom leads to an immense bounce towards the upside. For now, Canopy will most likely go for a re-test of the 0.382 fib level at $37, where the 50-day-EMA acts as additional resistance. While the MACD indicates bullishness and the RSI has reached the lowest point in 5 years, Canopy could even exceed the resistance at $45. However, the resistance at $30 could still deny the potential uptrend.
Cronos Group (NASDAQ:CRON) is nearing oversold regions in the RSI and is close to the golden ratio at around $9.00 where it most likely bounce off strongly. Although the MACD is rather bullish, it seems likely that Cronos will continue its downtrend towards the $9.00 mark. Then, a long-entry could be very interesting for a decent price hike towards $12.00 to $16.00.
GW Pharmaceuticals (NASDAQ:GWPH) is currently at very interesting support levels. First and foremost, GWPH is at the 6-year-trendline support. Secondly, GWPH is at a very strong support level which formerly had been a resistance numerous times. While GWPH could possibly reach oversold RSI levels before a decent price correction towards the upside takes place, current price levels a worth considering a long-entry.
Aurora Cannabis (TSX:ACB) is nearing the golden ratio as well, where it could bounce off heavily very soon. While the $5.00 price marks a very strong support level, it is also the lower trendline of the descending triangle, which acts as additional support. Although the overall trend is rather bearish, the RSI is very close to oversold regions which indicates an upcoming upward movement as well. Thus, the sub $5.00 levels could be a very interesting long-entry.