Cannabis Strategic Ventures (OTCMKTS: NUGS) Starting To Rebound

Cannabis Strategic Ventures (OTCMKTS: NUGS) might as well have found its footing, in the market, after bottoming out below the $1 psychological level. The stock has been under immense bearish pressure since late last year, resulting in the loss of more than 70% in market value.

NUGS Price Analysis

With the stock engulfed in a steep bearish trend, the company has served a number of groundbreaking catalysts that appear to be fuelling the upward momentum in price action. The confirmation that the company is on course to produce a minimum of 30,000 pounds of cannabis per harvest in a six-acre site is one of the developments fuelling the upside action.

In February, Cannabis Strategic Ventures secured 20 licenses for cannabis manufacturing, distribution, and cultivation set to further strengthen its push for market share in California Cannabis marketplace. The company has also secured a $3 million investment poised to accelerate its corporate expansion.

The stock rallying by more than 40% from all-time lows could as well signal renewed investor interest in the stock. A spike above the $1 psychological level is likely to fuel suggestions that Cannabis Strategic Ventures has clocked a bottom and due for a correction higher.

NUGS Daily Chart

The $2 a share mark is the immediate resistance level standing in the way of the stock turning bullish in the short term. A rally-followed by a close above the resistance level should open the door for the stock to make a run for the $3 a share mark, the next substantial resistance level.

About Cannabis Strategic Ventures

Cannabis Strategic Ventures is a Los-Angeles based firm that develops and collaborates category leaders in the cannabis sector. Under the NUGs brand, the company seeks to provide essential services to emerging and existing cannabis brands.

Why is NUGS Bottoming?

Cannabis Strategic Ventures has started bottoming out on the confirmation that the company’s cannabis growing and production capacity is on the rise. The launch of a six-acre cultivation site capable of producing up to 30,000 pounds of cannabis per harvest sets the stage for the company to become a key cannabis supplier.

“NUGS Farm North is in a prime location. We have assembled a great team to operate the site and to market and distribute its outputs. We have already begun cultivation and believe the marketplace is primed for the type of premium cannabis flower we are cultivating. We look forward to a successful operation at our flagship cultivation site,” commented Simon Yu, CEO Cannabis Strategic Ventures.

The farm in Northern California is poised to host manufacturing and distributional units in addition to being a cultivation hub. With up to 24 licenses, the farm is on course to spearhead and strengthen the Company’s cannabis cultivation manufacturing and distribution operations once it starts operating at maximum capacity late in the summer.

Early this year Cannabis Strategic Ventures signed a letter intent to partner Santa Barbara cultivation, which holds approximately 40 commercial cannabis licenses. The strategic partnership aligns with the company’s growth plans as it continues to strengthen its foothold in the California cannabis market.

$3 Million Financing

Operations at the NUGS farm could not have come at a better time as Cannabis Strategic Ventures is fresh from securing a $3 million financing from Triton Funds. With the new financial muscle, the company remains well positioned to pursue and accelerate cannabis cultivation operations in California.

Plans are also underway to expand existing portfolio brands such as The Asher House Wellness and Fitamins

“California is instrumental in setting the pace for the larger cannabis industry-both nationally and globally, and we are thrilled to have found a local partner to escalate the projects that we believe will positively impact stakeholder value to create superior sustainable returns,” stated Mr. Yu.

Bottom Line

Cannabis Strategic Ventures might as well have hit a bottom and due for a correction higher. Improving underlying fundamentals should continue to strengthen investor confidence and fuel further upside action.

A medium ascending trend line supports further upside action in response to a string of positive developments that affirm the company’s growth metrics. Increased cannabis cultivation and production capacities are developments that should continue to propel market sentiments. Look for the upward momentum to continue.

We will be updating our subscribers as soon as we know more. For the latest updates on NUGS, sign up below!

Disclosure: We have no position in NUGS and have not been compensated for this article.

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