The Green Organic Dutchman (TGOD) Continues To Soar On Post-Open Volume Surge

The power of technical buying continues to be on display for Green Organic Dutchman Holdings Ltd (TSE: TGOD) (OTCMKTS:TGODF). Prices again soared on volume that surged half an hour after the opening bell. We look into the specifics of the move, and pull out or crystal ball for the next few days.

To quickly recap, the genesis of TGOD’s ↑48% move higher through 2-plus sessions began with press release just after the open on May 29. The company announced it had entered into an exclusive agreement with Stillwater Brands to license its RIPPLE SC (Soluble Cannabinoids) ingredient technology. The product can be used to infuse cannabinoids into beverages and food products, and overcomes cannabis’ CBD and THC solubility problem.

Many analysts believe this segment will become a high growth, high margin market. Few agricultural companies generate substantial earnings simply selling cash crops.

Fast forward to the present, TGOD’s torrid run enters Day 3 on its highest volume to date. The company is currently neck-and-neck with Nemaska Lithium Inc. for the highest traded issue on the TSX, and has already surpassed its second-highest volume traded day ever. Around 5,012 million shares have traded hands so far, and an IPO volume high break of 9.04 million shares is a possibility.

Given the insatiable demand for The Green Organic Dutchman shares, can the stock rally further from current levels? I would say, the totality of evidence points in that direction.

Looking at the current chart, there still could be some juice left in the rally. Prices are forming a distinct flag pattern above the main outside trendline. These gains are being held despite contracting volatility, which signals to me mass selling still hasn’t entered the market. And volume isn’t just extreme, it’s posting outstanding post-open highs, indicating bulls are firmly in charge. If volatility starts turning upwards again, the direction is likely still pointing up.

Naturally investors are attempting to glean what happens next. After all, when you’re handed a fifty percent move in a couple days, booking profits becomes tempting; and generally, staking long term positions on parabolic moves higher is not the way to go.

For investors looking to make either decision, there could still be a surprise or two left in TGOD’s upside equation.

Original article: The Green Organic Dutchman (TGOD) Continues To Soar On Post-Open Volume Surge

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