Cannabis stocks are taking a pounding on Friday, and have mostly been under pressure for the past month or so.
For most of the past year, cannabis stocks have enjoyed strong positive momentum and favorable technical trends, but recent weakness has done significant damage to the near-term technical picture of some popular cannabis plays.
“420 Investor” Alan Brochstein told Benzinga on Friday that with cannabis stocks already more than fully valued from a fundamental perspective, the weakness has been triggered by “breaking technical support in a market where sentiment has been impacted negatively by CannTrust issues as well as the firing of CGC co-CEO Linton.”
The hardest-hit cannabis stock recently has been CannTrust Holdings Inc (NYSE: CTST). The stock is down 46.8% this month, as Health Canada froze 5,200kg of the company’s cannabis inventory after auditors found it had been growing cannabis in areas that have not yet been licensed. In …