Cannabis stocks are on fire as Canopy Growth (TO:WEED) was the first stock to break out. A hot sector can provide a lot of trading opportunities. Instead of chasing the leaders, it's often smart to buy the laggard, which will get pulled higher by the large amount of money pouring into the sector. This works especially well with commodity sectors where all companies in a sector essentially produce the same product.
OrganiGram Holdings (V:OGI) and Supreme Pharmaceuticals (V:FIRE) are two good examples and I bought them both in anticipation that they will follow the leaders in the sector higher.
With both stocks you can see clear resistance and support levels – just like the leading cannabis stocks. But when I bought them, the stocks had yet to break above resistance. Both had great volume and OrganiGram had a nice consolidation at the high end of the range leading into today’s breakout.
