• 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
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • 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
    • Trifecta Stocks
  1. Home
  2. / Investing

The Rally in GW Pharmaceuticals Should Continue - Here's How I'd Play It

Let's see how the charts of GWPH are shaping up.
By BRUCE KAMICH
Aug 08, 2019 | 12:31 PM EDT
Stocks quotes in this article: GWPH

In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Justin Gover, CEO of GW Pharmaceuticals plc  (GWPH) , the medical cannabis provider with shares that soared 9.1% Wednesday after the company posted earnings of 21 cents a share, when analysts were expecting it to only break even.

Gover said that over the past six months, more than 12,000 patients have received prescriptions for Epidiolex, GWPH's anti-seizure medication. Those prescriptions have generated over $100 million in revenue. Gover said there is still much education to be done with physicians, letting them know what Epidiolex is and how it works for their patients suffering with seizures. The company has been 20 years in the making, Gover noted, and the company is now delivering real medications based on real science. Real science takes time to do it right and that's what GWPH does. When asked about their pipeline, Gover said there are many potential uses for CBD-based products and his company is exploring opportunities for psychiatric uses and other neurological conditions.

Let's see how the charts of GWPH are shaping up.

In this daily bar chart of GWPH, below, we can see the recent test of the rising 200-day moving average line. It looks like today GWPH will close back above the declining 50-day moving average line on heavy volume.

Overall the On-Balance-Volume (OBV) line is mostly positive and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.

In this weekly bar chart of GWPH, below, we can get some perspective on the price action. Prices have mostly trended higher the past three years. Prices look like they have just survived a test of the rising 40-week moving average line.

The weekly OBV line shows a bullish trend the past two years or so and it is close to making a new high for the move up. A new OBV high soon for GWPH would probably be a leading indicator and foreshadow new price highs.

The 12-week price momentum indicator looks like it will soon turn positive.

In this Point and Figure chart of GWPH, below, you can see the recent strong rally without the price gap yesterday. The software is now projecting a possible upside price target of $230.24 which would be a new high for the move up.

Bottom line strategy: The recent move up on the charts of GWPH looks like it will be sustained. Aggressive traders could try to buy a dip to around $170 if available and look to add to longs above $190. Risk a close below $150 for now. $230 is the price target.

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 | Marijuana | Pharmaceuticals | Mad Money | Executive Interview | Cannabis

More from Investing

In This Market, If You Can't Beat 'Em, Join 'Em

James "Rev Shark" DePorre
Jan 26, 2021 5:50 PM EST

There is no way to know how long this theme of strong small-cap speculation and short squeezes will continue, but I have no interest in fighting it.

Is Live Ventures Taking Notes From GameStop?

Bruce Kamich
Jan 26, 2021 3:09 PM EST

Let's see what we might glean from the charts.

Ranpak Holdings May Double or More in 2021

Bruce Kamich
Jan 26, 2021 2:35 PM EST

Here's what aggressive traders should look for.

Jim Cramer: Ready, Set, Go!

Jim Cramer
Jan 26, 2021 1:30 PM EST

Here's why you should wait for a dip -- not the vaccine glut -- to start buying.

Let's Dare to Take Another Look at GameStop

Bruce Kamich
Jan 26, 2021 1:25 PM EST

Here's what we found in the latest GME charts.

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

  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • 08:05 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/26/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 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