3 Reasons This Stock Could Skyrocket – CBD, Marley, and?

With all the market volatility around China right now, I wanted to find a trade that should not be as affected by trade disputes. In fact, yesterday this stock closed up!

The other hot button for the markets right now is pot.

So today’s trade doesn’t care about China, and it is benefiting from the excitement about the growth prospects of the CBD industry!

Plus, its low priced at about $5.

New Age Beverage (NBEV) sells beverages, which they describe as a “better-for-you drink that actually tastes good.”

As you can see by the chart below the company has caught the attention of Wall St.

https://lh3.googleusercontent.com/Sd1Q2SDlcnp-R8cZqMYNVQmHDAVlwrsD0Tu6gpQItQYYQUJE17294Q3UZDt9abvqv7Gubz1Rowz58SNP2lsDUI2IoyNW7SLLm6cMzvRQgmLSPoUqqtp4mxguw5WUGfhHErCE7hG0

The excitement is focused around being distributed by Walmart, a Marley branded line of drinks, and the future introduction of CBD infused drinks.

Perhaps you can see how news around any one of these three assets could get investors excited.

Equally important, however, is the technical set up in the stock.

Currently, you can see that it has found a floor near $5 over the last 5 months and now it’s back there.

This time, however, it’s also near the 200-day moving average and just under the 50-day moving average.

The trade set up is to buy the next close over the 50-day moving average and over $5.40.

I’m specifically saying to wait for it to close over $5.40, because it often moves higher, but then gives back the gains. When this pattern changes, the momentum should become more bullish.

When the momentum shifts, this stock could easily trade right back up to its highs around $7.50, which would be a nice 40% gain.

The best stop is under $4.70, but under $5 is a way to reduce your risk by a little bit.  

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily