CARA Stock: The Play Is on Fire
Buz Investors No Stopping CARA Stock Biotechnology stocks are off to a good start in 2017, and marijuana stocks have been all the rage since 2016. Cara Therapeutics Inc (NASDAQ:CARA) stock brings together the best of both these worlds. This marijuana biotech stock engineers and develops cannabis-based products that target the body’s peripheral nervous system. The combination of these two market segments is the perfect ingredient for a runaway bull market. Marijuana stocks are on fire, and the turn higher in biotechnology stocks is the equivalent of pouring gasoline on a fire. Cara Therapeutics stock is up 94.2% year-to-date, and there are no signs that this rally is going to end anytime soon.
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No Stopping CARA Stock
This movement in price is exactly why I like this company. For those who are not familiar with the style of investment analysis I employ, I focus on investments that contain compelling price charts. Utilizing technical analysis, I generate trading strategies based on the signals and indicators that I have pulled off the price chart.
Bullish tailwinds began swirling around Cara Therapeutics stock in May 2016, after a bullish Moving Average Convergence/Divergence (MACD) cross was generated. MACD is a simple and effective trend-following momentum indicator that uses signal-line crossings to distinguish between bullish and bearish momentum. A bullish cross indicates that bullish momentum is now propelling the stock, and as a result, the path of least resistance is towards higher prices.
Price has accelerated to the upside in appropriate fashion, and during that run, the MACD indicator has remained embedded and shows no signs of abating. This indicates that the rally remains strong, and the performance in price is a testament to the validity of technical analysis. In my original publication on December 12, 2016, I claimed Cara Stock would get swept up with all the madness that was driving marijuana stocks higher, and so set $23.61 as a potential price objective. That objective is now in sight.
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