Cannabix Technologies Inc (OTCMKTS: BLOZF) continues to sink lower even on announcing breakthroughs on the development of its marijuana breathalyzer for law enforcement and the workplace. After an excellent start depicted by a 40% surge, the stock has once again come down tumbling in continuation of a bear trend that began early last year.
Cannabix Technologies Price Analysis
The stock is back to 2018 lows at the $0.88 level, looking vulnerable more than ever. A plunge below the $0.80 mark could result in the stock sinking further, probably back to two-year lows of $0.40. As it stands, it would take major development for the stock to bounce back given the underperformance of recent months.
Any bounce back after recent sell-off would have to contend with strong support at the $1 a share mark. This is the exact point where the stock started the year at, leading to a 40% plus surge. A rally followed by a close above the $1 technical level should reinvigorate hope of the stock making a run for this year highs of $1.50.
For Cannabix Marijuana to turn bullish in the wake of recent sell-off, it will have to rally and find support above the $1.50 resistance level. Below the $1.50 level, the stock remains susceptible to further drops, as has been the case for the better part of the year.
About Cannabix Marijuana
Cannabix Marijuana cast itself as a leading developer of marijuana breathalyzer for use in law enforcement as well as in workplace environments. The company boasts of robust breath testing technologies as it seeks to bring to market durable portable handheld tools for enhancing detection of marijuana.
Marijuana Breathalyzer Development
Cannabix Marijuana market sentiments have continued to edge lower if the underperformance in stock price is anything to go by. The plunge has come as a surprise given that the company has achieved significant progress on the development of a breathalyzer designed to provide law enforcement and employers an edge on the detection of marijuana on people’s breath.
Improvements on the THC detection device have made it possible to discriminate unwanted ions from complex human breath background matrices consistently. The upgrades have so far made it possible to detect THC by consistently suppressing other compounds found in breath such as nicotine, garlic, onion, meats, and ethanol.
Cannabix Technologies is in the process of completing characterization of the FAIMs device. The focus now is to make it suitable for use in various breath and environmental contaminants. FAIMS is designed to work as an ion blocking technology for blocking unwanted ions/analyses and allowing specified ions to pass through for detection.
The company’s scientists are actively tuning the FAIMs device with real-time switchable mass spectrometry to detect key molecules and their complex pathways
“The Company then plans to initiate third-party testing and piloting of the device. The Company has received interest in piloting from both U.S. and Canadian law enforcement groups as well as other organizations that drug test their employees,” Cannabix Technologies in a statement.
In addition, Cannabix Marijuana has confirmed that its engineers are currently developing a new atmospheric pressure chemical ionization source. The new system will provide improved ion control in terms of intensity, stability, and focus.
While Cannabix Technologies has taken a significant hit, it continues to work on a marijuana breathalyzer that could be a game changer in the multi-billion-dollar industry. As cannabis legalization continues to take over North America so are authorities coming to terms with the need for public safety given the widespread consumption of Marijuana in whichever form.
The fact that driving under the influence of marijuana can be dangerous calls for appropriate measuring instruments that would prevent people from hitting the road while under the influence. Given the difficulties in the testing of THC levels, Cannabix Technologies has achieved significant strides in coming up with an appropriate handheld tool.
Cannabix Technologies marijuana breathalyzer has the potential to be a game changer as a reliable and convenient roadside testing solution. Once the tool gains regulatory approval, the company should be able to market it, mostly targeting law enforcement agencies as well as employers.
As it stands, the company has on its hand’s valuable asset that if successful will be a vital driver of the bottom-line as well as market sentiments. However, the stock is likely to remain under pressure until the company achieves regulatory approval for the proposed marijuana breathalyzer.
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Disclosure: We have no position in BLOZF and have not been compensated for this article.