Sproutly Canada Inc (OTCMKTS: SRUTF) is pulling lower after an excellent start to the second quarter that saw it rally by more than 100%. The stock has since pulled back and now looks set to trade sideways, in a range, having bounced off a fundamental support level.
A rally to all-time highs came on the company confirming a strategic partnership with Ogilvy Canada as part of an effort of developing strong brands. In the recent past, the company has also inked a strategic partnership with Moosehead Breweries, resulting in the formation of a joint venture to launch cannabis-infused beverages.
Sproutly has also achieved significant progress on its bid to deliver a safe and consistent whole plant experience for cannabis, on securing processing license from Health Canada. The stock pulling lower in response to recent developments could as well indicate minor correction pending continuation of the emerging uptrend.
The $0.50 mark is the immediate support level supporting Sproutly uptrend that began in March. Above the critical technical level, the stock remains well supported for further upside action as a bounce-back play. Conversely, a breach of the support level would leave the stock susceptible to further drops, probably back to the $0.36 level, seen as the next support level.
A close below the $0.36 support level would bring to an end the bullish momentum consequently exposing Sproutly to further drops, probably back to 52-week lows. However, as it stands Sproutly is likely to edge higher after the recent correction.
What Does Sproutly Canada Do?
Sproutly Canada is a cannabis-focused company seeking to become a leading supplier to the cannabis beverage and edibles market. With its Toronto-based facility, the company cultivates
Shares of Sproutly have pulled lower after a meteoric rise as of the end of the first quarter. The pullback could as well be because of investors taking profits after the recent spike high. The company moving to strengthen its cannabis product line is a development that continues to prop the stock’s market sentiments.
The formation of a joint venture in partnership with Moosehead Breweries opens the door for Sproutly to strengthen its cannabis product line, with the launch of a new line of cannabis-infused beverages. The two are joining forces to develop, produce and market non-alcoholic cannabis-infused beverages using naturally produced water-soluble cannabinoids.
“Moosehead is a truly iconic brand, and we are very excited to partner with a company that possesses such deep-rooted Canadian heritage and over 152 years of history in the beer industry. Partnering with a company of this caliber is a strong validation of APP Technology and Infuz20,” commented Keith Dolo, Chief Executive Officer and Director of Sproutly.
In addition to the Moosehead partnership, Sproutly has hired Ogilvy Canada as its integrated brand development firm. The award-winning creative agency is tasked with the responsibility of delivering excellent creative and impactful communications strategies to promote the launch of Sproutly brands in Canada.
Sproutly Canada is in the process of building a robust brand and partnership strategy ahead of the legalization of edibles and beverages in October.
“With award-winning creativity and a deep understanding of our consumers, Ogilvy will be a valuable partner in helping Sproutly to launch into the beverage and edibles market with a brand and strategy that uniquely delivers the rapid onset benefits of our APP proprietary technology,” said Melise Panetta, Vice President, Marketing and Sales, for Sproutly.
The company is leveraging the Aqueous Phytorecovery Process technology to come up with new products, as it is capable of producing naturally water-soluble cannabinoids. Sproutly has also secured a Health Canada license that allows it to move forward with the production of cannabis oil and other related products.
The processing license also marks an important milestone on the company’s bid to commercialize cannabis beverages and other edible products.
What Next For Sproutly Canada
While Sproutly Canada has pulled lower from this year highs, underlying fundamentals are as solid as ever and set to support further upside action. The stock is likely to resume its upside action after the recent correction lower.
The pullback presents an exciting entry position given the company’s tremendous potential in the multi-billion-dollar industry.
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Disclosure: We have no position in SRUTF and have not been compensated for this article.
Terra Tech Corp (OTCMKTS: TRTC) A Bounce Back Play As Net Loss Narrows And Gross Margins Expand
Terra Tech Corp (OTCMKTS: TRTC) has retraced lower ever since it clocked 2019 highs at the end of the first quarter. The stock has crumbled under soaring bearish pressure. Amidst the steep pullback, the stock is a potential bounce-back play as it is currently trading at the lower end of a tight trading range.
Terra Tech Price Analysis
A plunge to the lower end of the $0.63 to $1 trading range leaves the stock in a precarious position. A plunge lower could elicit further selling pressure while a bounce back could result in the stock making run for this year highs.
In our view, the stock could bounce back on investors reacting to a string of positive developments that affirm the Company’s prospects. For starters, Terra Tech is fresh from launching a legal cannabis delivery services as it continues to pursue growth opportunities in California.
The Company is also fresh from delivering impressive financial results that indicate gross margin expansion as net loss from operations continues to narrow. The sale of Blum Desert is another development poised to strengthen the company’s financial position.
Terra Tech commencing cannabis sales to the adult use market should continue to excite investor’s, ideal for fuelling an upswing in the stock’s price action activity. With the stock appearing to have hit the floor after the recent pullback, a correction higher could be in the offing at the lower end of the trading range.
Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue
Namaste Technologies Inc (OTCMKTS: NXTTF) has had to contend with wild price swings, as investors reacted to delays in the filling of audited financial results and ousting of Sean Dollinger as the CEO. That could soon change, as the Company has come through and filled results that affirm robust revenue growth.
Namaste Technologies Price Analysis
However, concerns over widening net loss could hurt the stock’s sentiments in the market, at a time when it is in dire need of, groundbreaking catalysts to avert further slides. While the stock has bottomed out, it remains engulfed in a long-term bear trend.
The descending trend line could attract short selling pressure on the filling of negative news that arouse concerns about the Company’s long-term prospects. A spike to the $0.65 level essentially means the stock is at a critical resistance level.
Failure to rally and find support above the resistance level could elicit some form of selling that could see the stock trading sideways. Immediate support on any pullbacks from current highs is seen at the $0.40 mark.
A sell-off followed by a close below the $0.40 mark could result in Namaste Technologies resuming its downtrend, as has been the case for the better part of the past year. Conversely, a rally followed by a close above the $0.66 mark should pave the way for the stock to make a run for the $1.20 mark, seen as the next…
Cannex Capital Holdings Inc. (OTCMKTS: CNXXF) A Long-Term Play Despite Price Slump
A strategic merger with 4Front coming on the heels of Pure Ratios holding acquisition affirms why Cannex Capital Holdings Inc (OTCMKTS: CNXXF) prospects can only get better despite the recent price slump. The transformational events expand the Company’s operations into six U.S states signaling push for market value in the burgeoning cannabis sector.
Cannex Price Analysis
While Cannex has taken a significant hit in the market, it is still up for the year after an excellent start that saw it rally by more than 200%. The stock has since pulled lower in what appears to be a correction phase.
The ongoing pullback has since exposed the stock to a crucial support at the $1 a share level. A breach of the support level would leave the stock susceptible to further drops probably back to the $0.80 mark, a critical technical level.
For the stock to resume its uptrend, it first needs to rise and stabilize above the $1.20 mark, the immediate resistance level. The stock rallying and finding support above the $1.2 mark would open the door for bulls to fuel a rally back to 52-week highs.
Cannex is a diversified company that leases real estate properties and sells supplies to cannabis cultivators. The Company also offers financial services as well as branding and IP services to licensed cannabis operators. It is also focused on premium indoor cultivation extraction and branding of edible…