Watch, this pot stock may double soon

Two weeks ago, this quiet cannabis stock broke out of a 3-month base and jumped 17.8% in one day.

That was just the beginning.

The news that sparked that move was related to an announcement that its partner announced and expansion of its consumer CBD e-liquids products.

And this cannabis stock is poised for an even bigger move right now.

The cannabis industry is still in the early stages of growth and maturity, so it’s very hard to predict which companies will survive over the long-term.

As a result, the stock prices are very much driven by dreams and greed. This is where technical analysis works best, and the technical conditions are indicating there’s big potential in this stock right now.

Pyxus Int’l (PYX) has an interesting pattern. In February 2018 it broke out over its 200-day moving average, more than doubled, and then returned back to its breakout level around $14 where it consolidated for several months.

Then in September of 2018 it did it again. It broke out over its 200-day moving average at about $19, quickly doubled, and then retraced all the way back to $12.

After basing out for the last 3 months, the recent news mentioned above was a catalyst that moved the stock out of the base, and now it has just announced earnings.

Yesterday, February 11th, after the market close, PYX announced earnings. Today we should watch how the market reacts to the earnings very closely, because…

The stock is poised to break above its 200-day moving average and the $19 level that has historically been a technically pivotal price point.

The trade opportunity here is to be a buyer if it breaks and holds over $20, with a tight trading stop under $17.

There is resistance at $23, but a good first target is $30 which is a 50% move. A move back to its prior highs would be more than a double.

If you like volatile stocks with big potential upside, this is a good place to look.

 

Trade Smart,

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Rick Nartarian, Chief Investment Officer
The American Investor Daily