GrowGeneration Pushes Higher as the S&P 500 Slides

NASDAQ:GRWG   GrowGeneration Corp.
Even when the big indexes are sliding, a handful of growth stocks with their own stories can rally. Cannabis play GrowGeneration may fit that bill.

The seller of growing supplies like hydroponic equipment exploded higher last month on the heels of a strong quarterly report. (Revenue +123 percent, same-store sales +49 percent.) It’s pulled back and consolidated since as some potentially bullish patterns appear.

First is the support zone around $13.24. It was the close on August 14, one day after its earnings gap up. GRWG bounced there in late-August. It slightly undercut the level on September 4, but held. That resulted in a false breakdown, which was followed by a higher low on September 11.

Second is the narrow range in the last month. Bollinger Band Width squeezed to just 24 percent yesterday, the tightest since late July.

Next is the 8-day exponential moving average (EMA). Most big stocks in the market have been under their 8-day EMAs since early September, but GRWG has recently jumped back above the line – despite the broader market’s selloff intensifying.

Finally, the weekly chart shows an almost-perfect rounded basing pattern around $14.

GRGW is a tiny company serving a fast-growing niche. That also has the potential of reducing its correlation to the broader market.

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