We wrote about GW Pharmaceuticals plc (GWPH) in early November, writing this: "Investors need to risk a close below $130 to trade GWPH from the long side. Go long above $150 looking for gains to $185 and then $200."
Looking back at the price action since the beginning of November, chart below, we can see traders may have gone long above $150 and then were quickly stopped out with a loss about two weeks later. Strength above $150 did prove profitable but not until February.
GWPH is trading above the slightly rising 200-day moving average line and the bullish 50-day average line. Last week the 50-day line crossed above the slower-to-react 200-day line for what is commonly called a (bullish) golden cross.
The daily On-Balance-Volume (OBV) line is mostly positive and so is the Moving Average Convergence Divergence (MACD) oscillator.
In this long-term Point and Figure chart of GWPH, below, we can see a long-term potential price target of $339.
GWPH, according to media reports, seems to be ahead of game within the so-called "hemp sphere" with their drug Epidolex, used to treat seizures.
Another company in this sphere, Elixinol Global Limited (ELLXF) , is listed in Australia. The stock is low-priced and even experienced traders and investors should treat it as very speculative.
In this limited daily bar chart of ELLXF, below, we can see that prices have doubled in about six months. Prices are above the rising 50-day moving average line and the daily On-Balance-Volume (OBV) line is pointed up, along with the Moving Average Convergence Divergence (MACD) oscillator.
In this limited Point and Figure chart of ELLXF, below, we can see that a trade at $2.75 will be a small, upside breakout.
Bottom line strategy: Readers may be perusing this short piece on these two hemp names and they may be rolling their eyes. This is just not for me, they may be thinking, or this is way too speculative. Fine. I understand those concerns, but some readers do want to read about speculative plays and they understand the risks. Cocktail conversation was never this interesting.