A cannabis-related exchange traded fund is breaking above its short-term resistance after Canadian cannabis grower Canopy Growth (NYSE: CGC) attracts heavy investments on rising bets that the U.S. and the rest of the world will legalize marijuana.
The ETFMG Alternative Harvest ETF (NYSEArca: MJ) jumped 6.0% Monday, breaking above its short-term resistance at the 50-day simple moving average. MJ increased 14.4% since its last Tuesday low.
Many are betting on the continued growth of the cannabis industry as governments loosen controls over marijuana. For instance, beer maker Constellation Brands recently invested C$5 billion, or $3.8 billion, in Canopy Growth Corp., Denver Post reports.
“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space,” Constellation Brands CEO Rob Sands said. “We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space.”
CGC shares were up 9.8% Monday after advancing 9.2% Friday.