• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Here's Where to Plant the Seeds of Investment in GrowGeneration

Traders should be patient with GRWG ahead of earnings, according to the charts and indicators.
By BRUCE KAMICH
Mar 22, 2021 | 11:49 AM EDT
Stocks quotes in this article: RH, GRWG, GIS

In Jim Cramer's game plan for this week he told "Mad Money" viewers Friday night that he will be paying attention on Wednesday to retailer RH (RH)  and hydroponics supplier GrowGeneration (GRWG) , along with General Mills (GIS) . 

 
Cramer said he expects good things from RH and Grow Generation. He will be listening to General Mills to see how well the pantry stocks are faring as the economy reopens. 
 
Let's check out the charts of GrowGeneration, the retailer of hydroponic and organic specialty gardening products. We looked at GRWG on Feb. 11 and wrote "When you happen to get a stock that goes parabolic it is a real rush. You want to check your position and profits several times an hour. You dream that it can continue to the end of the day, week, month or whatever. At some point the music stops and there is a pullback or correction or worse."
 
Let's check the charts again. 
 
In this updated daily bar chart of GRWG, below, we can see that prices made a sharp pullback/correction following our Feb. 11 write-up. Prices bounced off of the $35 area and are now back above the 50-day moving average line. The slope of the 200-day moving average line is still positive and intersects down around $27. The On-Balance-Volume (OBV) line shows both a decline from February into March, but also what looks to be a new rising phase. The Moving Average Convergence Divergence (MACD) oscillator has turned up and is poised to cross above the zero-line for a new outright buy signal. 
 
 
In this weekly Japanese candlestick chart of GRWG, below, we can see an improving technical picture. Prices are still in a longer-term uptrend above the rising 40-week moving average line. Two recent weekly candles show lower shadows below $40 telling us that prices have declined to an area where traders are rejecting the lows. The weekly OBV line shows a little weakness in January and February, but the start of improvement this month. The MACD oscillator is poised for a positive upside crossover.  
 
 
 
In this daily Point and Figure chart of GRWG, below, we can see a potential upside price target in the $99 area.  
 
 
 
Bottom line strategy: Traders should be patient buyers of GRWG. Wait for a dip towards $50 risking to $47. The $100 area is our price target for later in 2021.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Agriculture | Mad Money | Consumer Discretionary | Earnings Preview

More from Investing

The Chasing Slows on Wall Street

James "Rev Shark" DePorre
Mar 24, 2023 4:34 PM EDT

After Deutsche Bank shakes up investors, market cools a bit, which might be a healthy development.

Stay Away From These Types of Stocks, They're Radioactive

Jim Collins
Mar 24, 2023 2:35 PM EDT

Here's what you're better off buying. I certainly have.

GE Looks Poised for a Pullback: How to Trade It Now

Bruce Kamich
Mar 24, 2023 1:45 PM EDT

The shares stopped short of my price targets.

See SPOT Run ... Down

Bruce Kamich
Mar 24, 2023 1:23 PM EDT

Spotify looks like it is poised for a downside price correction, according to the charts.

Expedition Everest RE: Let's Scale the Reinsurer's Charts

Bruce Kamich
Mar 24, 2023 12:35 PM EDT

Share prices quickly turned lower in March.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login