If doubling your money wasn’t enough already, then this up-and-coming pot stock may be the investment you’re looking for…
Whether you agree with the legalization of marijuana or not, there’s no denying the fact that there’s EASY money to be made from the industry as a whole.
Since Christmas Eve, Cronos Group’s (CRON) share price has increased 139%, a trade that would’ve returned more than two times your original buy-in!
Although this bull-run now seems to be winding to an end, there are plenty of other companies in the industry that appear to be setting up for similar price hikes.
Here’s how to spot this kind of profitability in the market, prior to takeoff.
Over the Christmas holiday, Cronos Group was valued around $9 a share. Now, skip ahead to the beginning of February and its stock price is sitting around $22 and change.
As I mentioned before, that’s the equivalent to taking home a 139% profit in a little over one month!
But what exactly pushed CRON’s price so high? Let’s take a look at the chart to find out…
For starters, you’ll notice that the 40-week moving average is angled up and share values are far above this red line.
Each of these factors indicate that we’re currently dealing with a healthy stock, but there’s more to it than just that…
If you look closely, you’ll notice that this same moving average is also acting as support.
Time and time again, CRON shares have refused to dip below the 40-week moving average, with stock prices bouncing off this red line instead.
It’s a bullish sign, to say the least.
Much of which is propelled by the cannabis industry gaining traction in the market. As the acceptance of legal weed becomes more and more widespread across the country, companies will hop on board for a slice of the profits.
For the time being, these stocks are a hot buy.
Cronos Group recently traded more than two and a half times its average volume on no news issued by the company. On top of that, shares in the cannabis-investment firm increased two-fold last month and look poised to continue higher.
If you’re looking for a quick turnaround in the market, then these marijuana stocks are your best bet.
Anytime the moving average is aimed upward and shares are situated above it, it’s generally a bullish sign.
The only thing that makes matters even more appealing is a solid line of support, which we saw in the chart above for CRON.
Just think, applying these same principles to an investment with CRON back in December would’ve already made you well over 100% worth of gains.
As always, cut your emotions out of the equation. Remember, you don’t have to agree with all the controversial aspects of the industry in order to make yourself some money from the market.
Keep these signals in mind as you move forward with future trades and enjoy the profits that follow.
