Cannabis Stock Sector Confirms Its Bull Market As 2019 Kicks Off

As per our cannabis stock forecast 2019 we expect this sector to be one of the outperformers because of its fundamentals. We are watching when chart strength lines up with fundamentals for an entry point. We believe that’s what we see happening in this space right now, and, because of this, we believe the cannabis stock sector confirms its bull market at the start of 2019.

We said a while ago that the legalization of recreational usage of cannabis on October 17, 2018 was a major and disruptive event for the global cannabis stock market.

We identified a couple of evolutions because of this, first and foremost:

  1. Demand for cannabis will explode because of legalization of recreational usage.
  2. Cannabis in health products based on the healing effects in cannabis as well as pain calming effects.
  3. All sorts of new ‘use cases’ will boos the sector.
  4. In terms of market potential, we see a global acceptance and legalization of cannabis over time, outside of North America in areas like Australia, Europe and Asia.

We wrote the above 3 months ago. In the meantime, very recently, we saw the booming business potential of this sector. The recent approval of the “Farm Bill” by Mr. Trump is likely going to be the key driver for the evolutions outlined above. The U.S. will likely see a big boost in 2019.

The first trading day of 2019 shows a enormous boost, and we now see that this might be a bounce off support in order to confirm of the long term uptrend.

Bellwether cannabis stock confirms uptrend as 2019 kicks off

One day does not make a market. We are very clear in this. It may have been an amazing first trading day for cannabis stocks but this in and on itself does not mean anything. We have to watch the long-term trends.

As said before we consider Canopy Growth, symbol WEED.TO, as the bellwether cannabis stock or the leading indicator in this space. It crashed in October but we said its long term uptrend was intact. Just one week ago we said it was decision time in this sector: cannabis sector go vs. no-go in 2019. We identified the $35 level as the line in the sand.

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