Trading Journal: India Globalization Is Rising
With just two weeks until cannabis becomes federally legal across Canada, the pot stocks are continuing their strong moves. On such stock, India Globalization Capital, Inc. (NYSE:IGC) has been on a particular tear.
The stock, which was trading just $1 on Sept. 20, hit $8 on Monday’s session on heavy volume. According to VantagePoint’s two main indicators, that upside is likely to continue.
On the chart above, the blue line represents a one-day predicted moving average, and the black represents a 6-day simple moving average. When the blue line is above the black, that indicates the stock is in an uptrend. The red-green bar at the bottom is a neural index, which forecasts temporary strength or weakness in a stock and can be used as a confirmation for the trend.
Clearly, the indicators are showing IGC is in an uptrend. Note the bullish crossover on Sept 18, two days before the stock began to breakout. Since then IGC is up over 600 percent, and the two lines have only diverged, indicating the trend is increasing in strength. In fact, this is something we hit on last week in a video posted on our site, which you can watch below, explaining how best to take advantage of moves like this in cannabis stocks.
Tuesday's trading action is continuing this trend, as the stock steadily made new highs through the premarket and morning trading sessions.
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