General Cannabis Corp (OTCMKTS: CANN) is a Denver-based producer of products and services in the regulated cannabis industry. The company is an over-the-counter penny stock that has pulled back to its support. As the price has been establishing support over the past several weeks, a director and 10% owner bought over 2 million shares with the price trying to break out on Monday.
CANN provides an integrated solution that ranges from operational and compliance to marketing and financing needs. They maintain a security and cash management segment; marketing and products; consultancy and advisory; and finance and real estate.
Since mid-July, the price has been testing its support near $0.3652 and made a strong move on high volume on Monday but failed to hold its ground. The move came just days after the company reported its Q2 earnings.
Prior to the report, Director and 10% owner Adam Hershey bought 2.04 million shares for around $0.40 on July 28. Insider are restricted from trading the company’s shares after the financial statements have been put together. The additional shares increased the director’s holdings to 7.532 million shares. The transaction was significant at a time when the price was attempting to breakout.
Action to Take: A close above $0.43 is an indication of a trend reversal that would likely see the price test the May high near $0.58. A similar move has been achieved twice since the March low. The fact the price held support is an indication that the pattern may be looking to continue.