3 Canadian Marijuana Stocks Moving Off Momentum

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Yesterday was an unstable day for Canadian marijuana stocks. This fall came about during a rally as multiple licensed medical marijuana producers trade at overbought levels. For those unfamiliar with the meaning of an overbought stock, here is a little insight. Overbought refers to a situation in which the demand excessively drives the price to levels that are not validated by fundamentals.

Here are three Canadian licensed medical marijuana producers whose stocks are trading at overbought levels and should be watched closely.

Canopy Growth Corp. (WEED.TO) (TWMJF)

Canopy is Canada’s largest and most diverse licensed medical marijuana producer. Last month, Canopy Growth announced that Constellation Brands (STZ) invested $245 million (CAD) for a 9.9% stake in the company to produce marijuana infused beverages. Canopy also solidified the Jamaican medical marijuana market increasing its international expansion as it already exports to Germany, Australia, Spain, Chile, Spain, and Denmark.

Shares of Canopy have been trading at overbought levels with marijuana stock has rallied over 55% over the last month.

Aurora Cannabis Inc. (ACB.TO) (ACBFF)

Aurora Cannabis has become one of the largest licensed medical marijuana producers regarding registered patients. Aurora has made several premeditated acquisitions and has recently entered new markets in Australia and Germany which has considerably increased its market share. Aurora Cannabis has recently been a popular investment with shares have rallying over 28% during the last week but keep in mind is being purchased at overbought levels.

CannTrust Holding (TRST.CN) (CNNTF)

CannTrust Holdings another medical marijuana went public in August and shares of the marijuana stock are up 150% since it commenced trading.

CannTrust recently obtained approval from Health Canada to export medical marijuana to legalized countries where there is a need. The company has started exporting to Australia and intends to begin exporting to Germany, Denmark and Brazil in the future.

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