GW Pharmaceuticals Finds Sellers At A Familiar Level

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

GW Pharmaceuticals plc GWPH shares were trading higher by $6.50 at $113.40 in Tuesday's session. Before the open, the company announced that top-line results from exploratory Phase @a placebo-controlled trial of Cannabidiol showed positive proof of concept data in Schizophrenia. The safety profile showed no serious adverse events.

The rally in pre-market trading followed through into the regular session. After a sharply higher open ($116.52 vs. Monday' close of $106.90), the issue rallied all the way to $120.94 before falling back to its current level. That level coincided with its August 6 high ($120.99) before crumbling to end that session at $106.17.

Owners of the issue have seized on the opportunity to sell the issue at these elevated levels. After making that high, it declined to $112.08 and after a rally to $115.56, it has been consolidating in the $113 handle.