Cannabix Technologies Inc (OTCMKTS:BLOZF) is likely to continue its solid performance after a minor correction from this year’s highs. The stock has found support above the $1 a share level, from where it is trying to make a comeback after imploding in 2018.
Catalysts and Share Price Analysis
While the stock remains engulfed in a long-term bear trend, the probability of the stock bottoming out is high, given the bullish momentum in the overall cannabis sector. In addition, the company has served groundbreaking developments that affirm it is on course to come up with a one of a kind marijuana breathalyzer.
One of the catalysts sure to trigger a rally from current lows is the confirmation that the company has achieved significant progress in refining the effectiveness of its marijuana breathalyzer. The breathalyzer is a crucial aspect of the company’s future especially at a time when law enforcers are in dire need of a gadget for enforcing public safety.
Short sellers failing to take the stock below the $1 a share level, after the recent pullback, could as well indicate the presence of buyers in the stock. As it stands, bulls will have to breach the $1.50 resistance level, to reaffirm the emerging uptrend after the underperformance of 2018.
Above the $1.50 level, the stock would have turned bullish in the short term ahead of the next resistance level at $1.80. Cannabix Technologies rallying and stabilizing above the $1.80 level would mark the end of a bearish run that had threatened to push the stock to all-time lows.
A violation of the $1 a share level, on the other hand, would give short sellers a reason to come back and continue pushing the stock lower, in continuation of the long-term bear trend.
What Does Cannabix Technologies Do?
Cannabix Technologies is a technology company specializing in the development of a marijuana Breathalyzer for use in law enforcement. The company is also working on a number of drug testing devices to be used in the detection of tetrahydrocannabinol.
Marijuana Breathalyzer Development
Cannabix Technologies is on the spotlight on announcing that testing of a breach collection unit (BCU) in its Marijuana Breathalyzer has so far provided stable and consistent results. Upgrades in the recent past has helped the BCU improve the consistency of breath sample collection thus offer real-time data parameters on breath flow rate, volume and carbon dioxide levels as well as temperature.
The company confirms that engineers may make additional adjustments to BCU, if needed, as part of the early testing phase.
“The Company’s technology has significantly progressed since its original filings, and new intellectual property and trade secrets have been developed that will ultimately supersede earlier broad patent applications. Additional patent applications will be filed in due course,” Cannabix Technologies in a statement.
Development of the marijuana breathalyzer is top on the agenda, as Cannabix Technologies looks to take advantage of the growing realization of public safety issues surrounding marijuana use. Driving under the influence of marijuana can be dangerous seen as one of the reasons why law enforcement needs a gadget capable of detecting high levels of marijuana.
Cannabix Technologies is one of the companies that remain well positioned to benefit as authorities move to combat the cannabis safety issue. The company hopes to provide a reliable and convenient roadside testing solution and in the process generate significant value on the use of its breathalyzer by law enforcement across the country.
“Cannabix is a well-funded company that has been steadily developing its prototype Breathalyzer, advancing its technology to bring the device to market as soon as possible, with research and pilot testing and other milestones ahead,” Cannabix Technologies in a statement.
Cannabix Technologies is on the cusp of being a key player when it comes to ensuring public safety on marijuana consumption. The introduction of its cannabis breathalyzer would be a game changer sure to strengthen its sentiments and prospects in the multi-billion-dollar industry.
The stock has continued to flirt with all-time lows in part because the company is yet to complete the development of the proposed Breathalyzer. The company securing regulatory approval for the use of the marijuana breathalyzer would be a game changer in the market.
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Disclosure: We have no position in BLOZF and have not been compensated for this article.