Market share analysis of cannabis companies

Among the "new" stock market sectors attracting investors is the cannabis sector with more and more shares available online. But before trading in the shares of companies specialising in this field, one must be able to carry out relevant analyses of these somewhat specific stocks. We therefore offer you our help in this respect and in this article we will tell you which shares of cannabis companies you can trade online and how to carry out good analyses of them.  

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Market share analysis of cannabis companies

How to analyse movements in the cannabis share price:

To invest effectively in these assets it is of course necessary to thoroughly understand how the cannabis market operates and thereby be able to understand the factors that can influence it. When completing a fundamental analysis on these assets you should therefore favour the following factors that are the most influential:


Some shares to think about for investing in cannabis:

You then simply need to choose the type of assets in which you wish to concentrate your investments. Here are a few examples of companies in different sectors of the cannabis industry that you may invest in at present:


How to achieve a technical analysis of the cannabis companies share prices on the stock markets?

Although the information we have previously supplied will assist you in completing a comprehensive fundamental analysis of the cannabis stock market share prices, a complementary technical analysis is undeniably useful to achieve signals that are truly reliable and advantageous.

For this type of analysis you will above all need to carefully choose your stock market charts and benefit from the most innovative and pertinent charts to ensure you can complete a rapid and precise interpretation. The online charts available through the brokers are generally particularly advantageous with this as they offer different trading tools for the customisation of the information displayed on your charts such as the type of charts and the timeline, as well as the possibility to display several technical indicators in real time so you can also examine the real time rates and share prices.

Although it is no longer necessary for you to complete the calculations to obtain these indicators, you will still need to understand them in order to correctly interpret them and thereby identify the most probable future trends of the various assets.

Concerning the choice of indicators to monitor for the completion of your technical analyses of the companies that exercise activities in the cannabis sector, these are the same for all assets. You could notably use the most popular trend and volatility indicators such as the MACD indicator, the mobile averages, or the Bollinger bands.

The strategic reversal and trend acceleration points can also be particularly useful such as for example the pivot points, the technical support and resistance levels and other similar data.


How to obtain reliable quality information on the cannabis companies quoted on the stock markets?

As you may have observed from the previous information, a comprehensive analysis of the share prices of the companies quoted on the stock market in the cannabis sector requires an examination of the share prices with a technical analysis but the completion of a fundamental analysis is also useful which requires certain prior knowledge and information. So, where can you find the necessary information? 

To assist you in completing your analyses of the larger assets in this activity sector we have completed dedicated articles for each of the most popular companies quoted. For each company and its share price that you examine you will be able to read precise and useful information relating to many aspects of this asset including the following:

Of course, the information provided by us is only a selection and should be completed with other information such as the news and announcements relating to these companies, their financial results and other data and events that could influence their stock market share prices. Therefore, don’t hesitate to complete your own research on these companies.


The Cannabis Stock Market Index:

It is still a little known fact that the cannabis sector has experienced such a strong growth that a stock market index has in fact been dedicated to it. This is the Cannabis Stock Index which is a global index of the major cannabis companies that follows the performance of the top 20 quoted companies in this market.  

The companies included in this index must exercise at least 50% of their activities in this sector.

It was a German company that created this stock market index in 2018 with the aim of effectively monitoring the performance of the companies that were the most exposed to the medical cannabis market. Its initial quotation was with a beginning value of just 1,000 points.

To be eligible for inclusion in the composition of this stock market index a company will need to comply with certain conditions as follows:

By using the exposure filters to the liquidity and revenue of these companies that we have just examined, the top 20 global companies of this sector are therefore included in this index.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500