Elixinol Global Ltd (OTCMKTS:ELLXF) Signaling Significant Bullish Breakout

Shares of Elixinol Global Ltd (OTCMKTS:ELLXF) are once again skyrocketing after a period of consolidation. The stock has been on an excellent run ever since it bottomed out, late last year. A 60% plus rally underscores the strength of the upward momentum that continues to show no signs of exhaustion.

ELLXF Catalysts and Share Price Analysis

A spike in share price and market value, in recent weeks, is in response to investors reacting to the company expanding its product line. The company is fresh from unveiling an extra strength balm just weeks after launching a water-soluble flavored CBD powder.

In addition, the company has expanded its operations into Europe as it continues to pursue new markets for its products. In addition to European market expansion, the company has also set foot in New Zealand where it is currently offering its comprehensive range of cannabidiol products.

With the expansion drive, the company is looking to strengthen its revenue generation capabilities. A 121% year over year increase in revenue in Q4 underscores the underlying growth. The stock has continued to take a flight as investors respond to the underlying growth.

ELLXF Daily Chart

After the recent spike, pullbacks should act as exciting entry positions where bulls are likely to come in and continue pushing the stock higher. Pullbacks will have to contend with the $2.50 support level, above which Elixinol looks set to continue climbing the ladder.

A breach of the $2.50 support level would leave the stock susceptible to further drops; probably back to the $2 a share range. As it stands, Elixinol remains well positioned to continue powering high given the strength of the upward momentum.

About Elixinol

Elixinol casts itself as one of the most influential CBD brands in the world with nearly three decades of experience. The company boasts of a proven record of accomplishment of growing and extracting premium-quality hemp. The company also conducts third party laboratory testing and quality control.

Expanding Product Line

Elixinol is skyrocketing after cementing its position as one of the most influential CBD brands in the world. The company has in the recent past, strengthened its product pipeline with the launch of Create Build Dream (CBD) a full spectrum water-soluble hemp CBD powder. The water-soluble CBD powder comes in three flavors of berry, citrus, and cocoa.

In addition, the company has confirmed the unveiling of a new take of its best-selling product Extra-Strength Hemp Balm. The soothing topical CBD product for relief and recovery is formulated with a synergistic blend of hydrating plant butter.

“The demand for CBD topical is ever-increasing in the consumer marketplace, particularly as the wellness movement continues to expand. With the passing of the Farm Bill and as clinical trials continue to reinforce the various health benefits that we see from CBD, we expect the demand to continue to increase both nationwide and worldwide,” said Chris Husong, Elixinol VP of Marketing and Communications.

Expansion Drive

The unveiling of new CBD products comes at a time when the company is increasingly expanding its footprint into new markets in pursuit of revenue opportunities. In Q4, the company registered a 121% increase in revenue that came in at $8.57 million.

The company has since opened new sales hubs as it looks to target customers in the Netherlands, Spain, and the United Kingdom, with its array of cannabis products. The expansion drive follows a new capital raise mid last year that the company intends to use to support its global expansion drive.

“This expansion of our European team and infrastructure reflects the trust of our European customer’s place in Elixinol. Elixinol has a long history in Europe, and we recognize the importance of our European partnerships and look forward to expanding those relationships as organic hemp CBD product acceptance around the globe increases,” said Gabriel Extension, President of Elixinol.

Early this year, the company made its much-awaited entry into New Zealand marketplace as it continued to explore new markets for its products.

Bottom Line

Elixinol is in a phase of robust growth if recent developments are anything to go by. Expansion of product line underscores a company focused on addressing various facets of the cannabis marketplace. Expansion into Europe as well as New Zealand also highlights a company focused on exploring new markets as it seeks to strengthen its revenue base.

That said the stock should continue to elicit strong investor interest and expect further upside action.

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Disclosure: We have no position in ELLXF and have not been compensated for this article.

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Elixinol Global Ltd (OTCMKTS:ELLXF) Signaling Significant Bullish Breakout
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