NEPT, Neptune Technologies & Bioressources Inc. just announced an agreement with one of Canada's largest medical marijuana distributors, Canaopy Growth (CGC).
Neptune makes extract and purified cannabis products that will now be apart of Canopy's Growth line. This partnership has driven the price of NEPT from $2.50 with barely any volume to $4.41 at the end of today with good volume.
-NEPT 6/20/19 1 Minute Bars with Daily Key Points
You can see a huge breakout from yesterdays 3rd resistance trailing higher til the days end. Then you can see a great movement in the morning from the 2nd resistances to the 3rd resistance and a little beyond. It consolidated a bit and then found support at the 3rd resistance.
Once a resistance point is broken it then acts as new support and vice versa with a support level being broken on the down side. When the market moves back up the support now acts as resistance.
After the bounce mid day NEPT moved on up to daily highs and had a strong breakout til the close. My prediction for the upside will be a gap to around $5.00 and then similar movement for as today. Even if there is not a gap my trade will be entering strong breakouts like around 3:30 EST today or on the upswing for pullbacks if NEPT gets trendy.
When you look at the long term price history of NEPT you can see there was a top around $5.00 back in 2012. It's going to interesting to see how NEPT will react tomorrow as it approaches tomorrow. If this news is really meaningful to market we might even see NEPT break $5.00 and head upwards to $6.00 beyond.
-NEPT 1 Day Bars Yearly Key Points
It is also worth showing the long term chart for Canopy Growth. The daily bar with the yearly Key Points look great!
-CGC 1 Day Bars Yearly Key Points
You can see the huge breakout in 2016 then CGC respecting for the Key Points from there on. The beginning of 2017 swung from the 2nd resistance to the 1st support mid year then had a nice breakout to the 3rd resistance. After retracing back down to the 3rd resistance as support it sky rocketed into January of 2018 at $3 7.50. It topped at this 3rd resistance perfectly and mind you that the level was made before the year begun. Then CGC bounced perfectly off of the 2nd support and the KEY POINT itself to trend back up to where it is now. It looks like CGC is ready for a nice all time high breakout (my favorite) above $37.50. So it is something I will be looking at long term with a handful of Marijuana stocks.
Thank you for your attention lets see NEPT continue to move tomorrow!
Disclaimer: I am not a financial advisor and this is not financial advice. Please don't use the information above as education and it is all just my opinion plus I still need a better disclaimer anyone know if other disclaimers are copyrighted and if you think traders even need a disclaimer in the first place.