Tauriga Sciences Inc (OTCMKTS:TAUG) is flirting with two-year highs after a 500% spike from all-time lows. Expansion into the cannabis space is one of the reasons why the stock is skyrocketing after more than two years of underperformance.
TAUG Share Price Analysis
The meteoric rise comes on the company making impressive strides in pursuit of growth opportunities, around cannabis-infused chewing gums. Early in the year, the company confirmed it had met all financial obligations pertaining to the launch of cannabis-infused Tauriga Gum.
The company has since embarked on a commercialization drive as it seeks to ramp up sales, for its latest flagship product. Plans are also underway to make the CBD infused Tauriga Gum available on Amazon as the company looks to target a wider target audience. In addition, Tauriga Sciences has unveiled a new e-commerce site that is to spearhead its sales operations, mostly focusing on the CBD infused chewing gum.
A spike to two-year highs caught many investors by surprise, waiting to see if the bullish momentum has what it takes to continue pushing the stock up the charts. A rally followed by a close above the $0.16 mark would be a major development, as it will mark an end to a long-term bearish trend that had plunged the stock to all-time lows.
Below the $0.16 mark, the stock remains engulfed in a long term bear trend that began two years ago. However, in the short term, the stock looks bullish, given the strength of the upward momentum and the fact that the overall industry is bullish.
The $0.08 mark is a critical support level above which the stock looks set to continue climbing the cannabis ladder. A breach of the critical support level, on the other hand, could give short sellers a reason to push the stock lower.
About Tauriga Sciences
For the longest time, Tauriga Sciences has been producing, licensing and selling lip balm products. However, in the recent past, the company has expanded its footprint into the cannabis space. The company has since launched Tauriga-Gum, a CBD infused gum that it is planning to use to gain a head start in the multi-billion industry.
Tauriga Gum Launch
Shares of Tauriga Sciences are exploding in the market, in response to the progress that the company has made on the launch of its CBD infused Tauriga Gum. The company has completed the production of the initial inventory tranche, ahead of the commercial launch.
The commercial launch should start anytime soon, paving the way for the company to delve into the multi-billion industry in pursuit of revenues. Listing Tauriga Gum on the Amazon e-commerce platform is a core objective that the company is pursuing with vigor.
The company is also working on its e-commerce platform that will offer Tauriga Gum chewing gum to supplement other sales channels. Tauriga Sciences has also opened discussions with a number of prospective distributors as well as retail stores that it plans to leverage as part of Tauriga-Gum commercialization push.
“Over the past few days, the Company has continued to meet with top tier prospective distribution companies and believes that Tauriga-Gum™ may represent a high quality/low-risk entry into the CBD market (for such distribution firms). The Company can also confirm that it expects to commence generating revenue during this current month (March 2019),” Tauriga Gum in a statement.
Tauriga Sciences rise from the dead is almost complete. The company has skyrocketed and is now staring at a critical resistance level, above which it could turn bullish and continue climbing the ladder. A spike in share price, as well as market sentiments, have come on the company expanding into the multibillion-cannabis industry.
The launch of Tauriga Gum is a development that has continued to excite investors consequently triggering the blockbuster run, back to two-year highs. The company moving to make the products available on Amazon is another development that continues to strengthen the stock’s sentiments in the market.
A spike to two-year highs raises concerns as to whether the stock has what it takes to continue rallying. All the news pertaining to Tauriga Gum is already priced in. For the stock to continue skyrocketing, then the company will have to serve new groundbreaking catalysts to keep the momentum going.
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Disclosure: We have no position in TAUG and have not been compensated for this article.