GW Pharmaceuticals Continues To Rally: A Technical Look

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

GW Pharmaceuticals Plc GWPH shares were trading higher by $2.20 (2.5 percent) at $97.86 in Monday's session. The darling of the marijuana sector is following through on Friday's impressive nearly $11.00 rally ($84.58 to $95.66). It should be noted Friday's rally took place on extremely high volume for the issue of nearly two million shares vs. its 20-day average of 325,000.

Investors may be anticipating positive results as the company is set to release additional Epidiolex data at the American Academy of Neurology that should inform developments in other orphan epilepsy. Over the past year, the issue has fluctuated primarily based on news concerning the drug and not so much on developments related to marijuana.

See Also: 15 Marijuana Stocks To Watch In 2015

After a bit off profit-taking off the open, it quickly found support just $0.16 from its opening price ($94.23 vs. $94.39) before ripping north once again. At time of writing, it easily surpassed Friday's high ($95.92), reaching $98.43 before taking a breather.

The all-time high for the issue was made in July 2014, at the pinnacle of the "pot stock" mania at $111.46, before cascading to $58.16 in October.