Cannabis stocks Aurora Cannabis Inc. (NASDAQ:ACB) and Canopy Growth Corporation (NASDAQ:CGC) shares are trading higher Tuesday. Here's a look at what's going on.
The Details:
Florida's Supreme Court ruled on Monday to allow an initiative that would legalize recreational marijuana to appear on the state's ballot in November.
If approved by 60% of voters, the proposal would legalize the "non-medical personal use of marijuana products and marijuana accessories by an adult" 21 or older in the state.
Cannabis stocks have rallied significantly amid legalization in Germany and renewed hopes of rescheduling in the U.S. with Aurora climbing more than 50% and Canopy Growth up over 160% over the past month.
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ACB Stock Prediction 2024:
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Aurora Cannabis, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Aurora Cannabis, the 200-day moving average sits at $4.88, according to Benzinga Pro, which is above the current price of $4.79. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
ACB, CGC Price Action: According to Benzinga Pro, Aurora Cannabis shares are up 13.5% at $4.89, and Canopy Growth shares are up 12.2% at $8.46 at the time of publication Tuesday.