Swing Trading Spotlight - GWPH

Ill make this short. I came across a Mad Money segment where Jim Cramer presented a few stock picks that he and his colleague Tim Collins discussed from both a fundamental and technical perspective. Their presentation was geared more toward longer-term investment.


I thought it was pretty interesting overall, but I was more interested in finding short-term trading opportunities within this larger scheme. And thats what Im presenting below. Collins seemed pretty optimistic about GWPH (Cramer leaned more toward CGC). Ill go over this rather quickly with virtually no fundamental or technical context.


GW Pharmaceuticals (GWPH)


Collins recommended the stock as a buy at [1] when it broke above short-term resistance. From a weekly perspective, Collins sees an ascending triangle, whereas I see a channel in which price is at the upper end (theres a difference between the two). At any rate, a swing trade setup with a breakout at [1], a stop at [2], and with a target of [3] might be potentially favorable. Notice the bullish rejection in yesterdays action at [4]. But also, notice the lack of volume in the bars preceding [5]--although not promising, unless follow-through volume picks up, the setup seems pretty easy to understand and potentially low-risk if you manage your positions carefully.



The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.