IM Cannabis Corp. (NASDAQ:IMCC) shares are trading higher Wednesday, and the stock is up more than 100% over the past five days. Here's a look at what's going on.
The Details:
Cannabis stocks soared Tuesday following reports that the DEA will move to reschedule marijuana from a Schedule I to a Schedule III substance. IM Cannabis shares are holding the gains, while larger weed stocks including Canopy Growth Corporation (NASDAQ:CGC), Aurora Cannabis, Inc. (NASDAQ:ACB) and Tilray Brands, Inc. (NASDAQ:TLRY) are dropping Wednesday.
IM Cannabis shares are moving on heavy trading volume with more than 36 million shares already traded in the session. According to data from Benzinga Pro, the stock's 100-day average volume is less than 780,000 shares.
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Should I Sell My IMCC Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of IM Cannabis have gained 55.21% year to date. This compares to the average annual return of -76.64%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. IM Cannabis stock currently has an RSI of 87.37, indicating overbought conditions.
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IMCC Price Action: According to Benzinga Pro, IM Cannabis shares are up 24.4% at $1.07 at the time of publication Wednesday.
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