Charlotte's Web Holdings, Inc. (CWBHF) is another hemp play that one Real Money reader pointed out to us recently. CWBHF deals in CBD wellness products, but I find the charts and indicators more interesting. Let's check.
In this daily bar chart of CWBHF, below, we can see we do not have a lot of price history to work with and thus our moving averages were shortened to 20-days and 50-days.
CWBHF is trading above both rising moving averages. The daily On-Balance-Volume (OBV) line is ready to make a new high for the move up to confirm the rally and tell us that buyers of CWBHF have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has recently turned higher for a fresh, outright go-long signal.
In this Point and Figure chart of CWBHF, below, we can see an upside price target in the $21-$22 area.
Bottom-line strategy: Seasoned investors could consider going long CWBHF around current levels if they can afford to risk below $14.
On the upside, the $22 area is our first price target. Do your own fundamental research before buying.