Out of the 460 cannabis stocks we follow in our portfolio, we believe 22nd Century Group has the greatest immediate breakout potential. The cannabis biotech company appears to have both decent fundamentals and technicals – but why is 22nd Century poised for a breakout?
22nd Century Group (Nasdaq: XXII) is a leading plant biotechnology company focused on technologies that alter the level of nicotine in tobacco plants and the level of cannabinoids in hemp/cannabis plants through genetic engineering, gene editing, and modern plant breeding. 22nd Century’s primary mission in tobacco is to reduce the harm caused by smoking through the Company’s reduced nicotine content tobacco cigarettes – containing 95% less nicotine than conventional cigarettes. The Company’s primary mission in hemp/cannabis is to develop and commercialize proprietary hemp/cannabis plants with valuable cannabinoid profiles and desirable agronomic traits.
22nd Century and Biden’s Big Tobacco Move
April 20, 2021– 22nd Century Fully Prepared to Deliver the Solution as Biden Administration Considers Requirement to Lower Nicotine. Reports in the media (WSJ) that the Biden Administration is actively considering moving forward the Advance Notice of Proposed Rulemaking (ANPRM) that will require Big Tobacco to reduce the amount of nicotine in all combustible cigarettes sold in the United States to be “minimally or non-addictive” – a level already achieved in the first—and only—combustible RNC cigarette product already authorized for sale by the FDA, which contains 95% less nicotine than conventional cigarettes.
Related: Cannabis Stocks to Watch: Nutritional High International
In December of 2019, the FDA authorized 22nd Century to sell its RNC cigarettes under the Premarket Tobacco Product Applications (PMTA) pathway. The FDA concluded that “following a rigorous science-based review”, the Agency determined that these reduced nicotine products are, “appropriate for the protection of the public health” due to its, “potential to reduce nicotine dependence in addicted adult smokers, who may also benefit from decreasing nicotine exposure and cigarette consumption.” The FDA also determined that, “[y]outh are also unlikely to start using the products, and those who experiment are less likely to become addicted than people who experiment with conventional cigarettes.”
Related: Why is 22nd Century Stock a Strong Buy?
Why is 22nd Century Poised for a Breakout?
Sure, 22nd Century Group seems like a great play based on the fundamentals but what are the technicals telling us? Pictured above is a chart of XXII. Notice that buyers showed up in the fall of 2020 and a rally from below 63 cents to a high of pretty much $3 in a couple of months time. This type of strong buying impulse is important because of almost always green weekly bars. In this strong up leg…there was 13 total weekly bars with only 2 weekly bars that were red.
Related: Global CBD Infused Cosmetics Market Poised for $ 2.22 Billion Growth in the Next 4 Years
This type of px action is a pure breakout/trend change px action. Once a market shows a clear trend, it tends to develop into a parallel channel or a trading channel that continues to drift to a mathematical measured move target. It seems overly simplistic but the mathematical nature of markets holds up over time.
Simply based on a projected move…this stock could hit $15+ in the coming year as the first target. I think it ultimately goes much higher if we look at the monthly charts. This week ending in Aug 27th, 2021 was a quality green weekly bar. Opening up more upside for this stock to keep trading higher. For these reasons, we believe 22nd Century is poised for a breakout.
22nd Century Poised for Breakout
Cannin Investment Group: Your Hemp Stocks Experts
Cannin.com is your trusted resource for top hemp stocks. Our team of financial experts evaluates all emerging hemp stock investing opportunities. We aggregate hundreds of hours of market research to provide tips on the best hemp stocks for 2021.
Use Cannin as your resource for:
Is it too late to invest in hemp stocks? No! This is the perfect time to invest.
Wall Street analysts expect the global cannabis industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in hemp stocks is now.
Are you interested in the best hemp stocks for 2021 like HempFusion, Inc., Charlotte’s Web, Canopy Growth, or Hemp Inc.?
Are you looking to buy stock in hemp companies or stock in cannabis companies in 2021? Interested in penny hemp stocks? Interested in leveraging the power of algorithmic stock trades to profit from hemp stocks? Looking for the best Canadian cannabis stocks? We can help.
Predict price movements of hemp stocks several hours in advance with our proprietary algorithmic stock trading software.
- +30% Gains in 2020
- +49.8% Gains in 2019
- Backtested since 2012
At Cannin, we’re so confident you’ll love our algotrading hemp stock signals, we’re willing to give you a one-month risk-free trial to see it for yourself.
Profit from the best hemp stocks – we’ll show you how at cannin.com.
22nd Century Group Poised for Potential Breakout