Marijuana Stocks: Anticipating Much Higher NBEV Stock Prices – Profit Confidential

iStock.com/rezkrr NBEV Stock Is Still in the Early Innings of Its Advance

The House and Senate have finally reached a deal on the farm bill, and the lawmakers are expected to vote on it later this week.

This is exciting news, especially for marijuana stock investors, because there is a provision in this farm bill that hemp will no longer be designated as a controlled substance. This will legalize the crop under federal stature, which will allow cannabidiol (CBD) to be legally sold nationwide.

Companies like New Age Beverages Corp (NASDAQ:NBEV) stand to benefit from this move. The reason why NBEV stock is positioned to benefit is because New Age Beverages Corp has created a line of CBD-infused beverages.

The passage of the farm bill into law will open the doors for New Age Beverages Corp to sell its line of CBD-infused beverages nationwide. This will ultimately boost the company’s top and bottom lines.

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The growth that this company is anticipated to experience from its new line of beverages is why investors have already begun to bid up the price of NBEV stock.

Yes, New Age Beverages stock has appreciated a considerable amount since it bottomed in August (258.7%, to be exact), but I happen to believe we are in the early innings of a much larger move toward higher prices.

For one, the stock is now firmly trading above a very influential metric, which is highlighted on the following chart.

Chart courtesy of StockCharts.com

This stock chart highlights an influential technical indicator known as the 200-day moving average.

The 200-day moving average is a simple metric that is created by averaging the stock’s closing price over the last 200 days and plotting that value on the stock chart. This essentially creates a line that represents the stock’s

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