Weekly Charts with Rhum (BTC, CGC, GDXJ, SPCE)

Here’s another edition of our chart-based weekly with our FinTwit friend Rhum.

Every week he breaks down charts from some of the hottest tickers out there. These charts will show you some of the most hyped-up names of the week, and maybe even a few that might be good buying opportunities.

If you like the charts, don’t forget to support Rhum and his blog for his hard work and don’t hesitate to send in any chart requests either.

BTC – Building Back A Base

The whirlwind that is Bitcoin continues amid a recent upswing. While it’s difficult to say what is driving this recent strength, investors can assume it has to do with concerns over the fiat currency system and the effects that the coronavirus will have on money printing and monetary policy.

Similar to gold, investors may see Bitcoin as the digital hedge against central banks gone wild. However, it’s important for investors to remember that BTC is much more volatile, and not nearly as widely accepted as a store of currency as gold.

CGC – Earnings Breaks Bottom

After an earnings that beat expectations, Canopy Growth (NYSE: CGC) finally broke a months-long downtrend. While a positive sign for the industry, we caution investors not to get too excited.

The underlying issue with the cannabis industry is product oversupply. So long as the production outpaces consumption, prices will fall and already-struggling companies will be hit harder. To use the frequent LP buzzword, until the industry “right sizes” itself, investors should make investments with extreme caution.

GDXJ – Juniors Starting to Shine

With the recent strength in gold and growing concerns over the coronavirus, it appears gold juniors (NYSE: GDXJ) are building some modest interest after years of capital starvation.

At Capital 10X we believe 2020 will be another strong year for gold, and by effect, gold miners represent your best-leveraged play on the gold price. While juniors present a higher risk investment, the potential return is also much more attractive.

SPCE – Headed to the Moon?

In what has become the most recent Twitter pump, Virgin Galactic Holdings (NYSE: SPCE) has taken off on strong, bullish volume. While it’s unclear when this rocket ship will explode, if you have the risk appetite, it could be one hell of a ride.

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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Evan Veryard has a Bachelor's of Chemical Engineering from McGill University and a MaSc. of Chemical Engineering from RMC. He has over 6 years of research experience focusing on industrial materials. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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