Several factors could push stock prices higher
The marijuana stock market could be getting ready for a rally. The bottom of the U.S. stock market hit around December 24 last year and, since then, a number of entities in the marijuana space have seen incredible improvements. Many analysts, such as Chris Mermeulen of Technical Traders Ltd., see a bull approaching and anticipate a strong rest of the year.
One of the reasons for a rally could be due to the anticipated breakout of the Alternative Harvest exchange-traded fund (ETF), MJ. It is expected to gain 14% or more and could reach over $39. If that happens, it could then push the $45 mark, which would indicate a 32% increase.
Mermeulen expects MJ to be a catalyst for growth, adding that it could see a rally within the next two months. He explains, “If our longer-term analysis is correct and the US major stock market indexes continue to rally, we believe MJ could attempt to retest recent highs near $45 over the next 30~60+ days.”
Another feeder for growth is the activity seen on Capitol Hill. With the current Congress holding its first hearing on marijuana, many in the industry are seeing great things for the industry and are becoming more confident that the federal government could open, on some level beyond the 2018 Farm Bill, the marijuana industry more before the end of 2019.
Several stocks, such as Aurora Cannabis, may be trading slightly lower today, but this is to be expected. It is only down pennies from yesterday and will certainly settle over the next couple of days. Looking down the road, however, there could be a bull run coming soon and investors should be prepared.