Two cannabis stocks are among our four charts to watch today.
Aphria Inc. (APHA) jumped 40 cents, or 6%, to $7.08 on 9.1 million shares Tuesday on news that Green Growth Brands Inc. (GGBXF) made a formal offer to acquire the Canadian cannabis producer. The stock, which has been in a steadily rising channel off its December low, pulled back for much of last week on low volume ahead of Tuesday’s breakout. There’s a gap to fill at around $8 from the early December gap-down, a move through which could get the stock to near-term targets at $8.50 and then $9.25.
Canopy Growth Corporation (CGC) gained 12 cents to $43.66 on 8.8 million shares Tuesday on no news from the Canadian marijuana producer. The stock has had a steep run-up this month before consolidating in recent sessions. A move through the November highs near $46.50 could accelerate the stock further into the low-to-mid $50’s. Keep in mind that $40.50 is a triple intraday support platform from last week.
Kirkland Lake Gold Ltd. (KL) popped $1.30 to $27.64 on 942,400 shares Tuesday. The move to new all-time highs came on no news from the Canadian gold miner. The stock has been rallying sharply in the last two months, up 50% since mid-November, after pulling back from its August highs just below $24. Watch for a move to the top of the long-term rising channel near $32.
TAL Education Group (TAL) moved up $1.01 to $31.20 on 6.2 million shares Tuesday. The move came on no news from the China-based provider of K-12 after-school tutoring services. The stock in October popped out of a four-month declining wedge, rallied for nearly a month, and then consolidated again until recently breaking out this month. Tuesday’s advance edged the stock above lateral resistance, which could accelerate it to $33 and then $36.
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