It has been a wild past week for the Cannabis stocks. Breakouts and continuations. In this type of environment, I like to look for Cannabis stock charts which are just on the verge of breaking out. Plus Products (PLUS.CN), is one such chart.
Before we delve into the company and the chart, let’s quickly go over the Cannabis sector catalyst. Cannabis stocks began to tear once news came out that top Senate Democrats vowed to legalize Marijuana, and to do so soon.
In a joint statement, new Senate Majority Leader Chuck Schumer (D-NY) and Sens. Corey Booker (D-NJ) and Ron Wyden (D-OR) said they would pursue and prioritize “comprehensive cannabis reform legislation” in the current session.
Over on Equity Guru’s Discord Trading Room, we have been playing the breakouts on Cannabis through the ETF HMMJ, Village Farms (VFF), Cronos Group (CRON), and Aphria (APHA) just to name a few. A lot of these charts were covered in my last Cannabis round up piece. But now, there are tons of Canadian companies with great charts being brought up by our group of traders and investors.
Plus Products (PLUS.C) has been around and selling their award winning gummies and candies in California before cannabis 2.0 was even an idea in Canada. They’re headquartered in San Mateo, California. CBD gummies for everyday wellness!
The company is expanding to other markets, such as the UK, and also recently saw its sour watermelon UPLIFT gummies being recognized as LeafLinks’s best selling Cannabis edible in the state of California, and one of the five best selling edible products across all active markets.
The most recent news is a partnership with Israeli-based CannRx Biosciences to enhance and improve-upon the onset time for their gummies and other cannabis-infused products.
“We are excited about the relationship with CannRx and their research team, and the opportunity to further advance the science behind our products. Israel leads the way in cannabis research and the industry is ripe for innovation. We believe that consumers want to take control of how quickly they can feel the effects of cannabis. Our goal is to put them in the driver’s seat for the experience, from start to finish,” said Jake Heimark, CEO and co-founder of PLUS.
Our very own Joseph Morton covered this news. His full article can be read here.
In summary, Joseph says:
To put together and test their technology, CannRx replicated the body’s natural protein-based transport system, which moves active compounds through the body, and tailored the process for cannabinoids. PLUS and CannRx intends to use the patented CannTrap technology to make products with a more controlled onset and offset times, so consumers can have more control over their own experience. The idea is that PLUS wants to spread these formulations across their portfolio, while reducing the dose needed and increasing the onset speed.
Or as the title of his article says: to perfect your Cannabis 2.0 experience.
My readers know that on Market Moment, we like to look at technical charts indicating some sort of reversal, and give us HIGH PROBABILITY trades using our Market structure method. Plus Products fits the bill. And it fits the bill very nicely.
One of the nicest looking charts in the Cannabis space right now, and one which confirmed a breakout and trigger on Friday (February 5th/21). Those who follow Market Moment regularly, or are one of our 300 plus members on the Equity Guru Discord channel, can probably breakdown this chart while they sleep. It meets all the criteria we look for.
Knowing that all markets move in three ways (downtrend, range, uptrend), we see the downtrend, and the range which held since Spring of 2020. The break was triggered on Friday, but today’s daily candle is setting up to print a much stronger close and confirmation.
Friday’s breakout day saw a volume of 360,356 shares traded with a 5.05% move higher. Currently at time of writing, the stock is up 4.81% on 69,180 shares traded with five hours of trading left to go.
On the technical front, the breakout also took us above $1.00. This is a major psychological zone, and will continue to act as support going forward. As long as Plus Products holds above $1.00, the uptrend and momentum remains intact.
The next major zone of interest, and resistance (price ceiling), comes in at the $1.50 zone. If we do break over that zone, then $2.50 is our next target.
In summary, the charts looks great with a technical pattern and breakout. The broader fundamentals for the Cannabis sector is there with the US legalization. The fundamentals for the company are also very exciting with continued gummy sales, expansions to other markets, and partnerships with other companies.
Full disclosure: PLUS Products is an Equity.Guru marketing client.