GW Pharmaceuticals Breaks Out Of 5-Day Trading Range
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH) shares were trading sharply higher by $6.61 at $122.22 in Tuesday's session. With no significant news out on the issue, let's examine the technicals for an explanation for the explosive rally.
The best in breed in the marijuana sector had been confined to less than a five-point trading range over the last five sessions ($112.09 to $116.81). In today's session after a lower open, it found support in the area of Friday's close ($114.11), reaching $114.08 before embarking on its move higher.
So far, the rally has come up shy of its all-time high ($126.78), only reaching $125.30 before falling to the $122 level.
It should be noted today's rally is taking place on heavier than average volume. With less than two hours remaining in the session, it has traded 644,000 shares compared with its 20-day average of 346,000 shares.
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