The relative strength index, or RSI, is an indicator measuring the degree of recent price changes. RSI is used to evaluate overbought or oversold conditions in the price of an asset. Generally, RSI is considered overbought when above 70 and oversold when below 30. Traders often use RSI as a potential indicator towards what direction an asset’s price might move. If a stock is overbought, that means that analysts or traders believe it is trading above its intrinsic value. If a stock is oversold, analysts or traders believe it is trading below its intrinsic value and has the potential for a price bounce. Today we’ve found four oversold Canadian marijuana stocks: cannabis stocks with an RSI below 30 on a basis of their 7-day RSI and 14-Day RSI.

The nascent marijuana industry has come a long way over the past few years, and while there’s still ample profit to be had from the budding market, the most significant opportunities in the space may be lying outside of the scope of the average investor.

A majority of the hype has undoubtedly been aimed at cannabis cultivators, and while that’s the natural place to go looking for ways to gain exposure to the marijuana space, it’s not the only (or best) way as we wrap up Year One of nationwide legalization.

Many other cannabis sub-industries are gaining more traction, and as the industry matures, there will be multi-baggers that aren’t in the business of growing weed.

 Choom™ (CSE: CHOO; OTCQB: CHOOF), an emerging adult use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce that it has signed a definitive agreement to acquire The Green Room, a popular cannabis retail store chain which has operated since 2016. 

The anniversary of the Cannabis Act is a few months away. Despite the twists and turns that have emerged, investors remain passionate about the marijuana industry.

Today, at the halfway mark of 2019, let’s grade the top five marijuana stocks.

The “dawn”

Aurora Cannabis (TSX:ACB)(NYSE:ACB) is living up to its name. The company’s name derives from the Latin word aurora, which means “dawn.” Yes, the largest cannabis producer is seeing the break of day and is the brightest spot in the sector at the moment.

Holding an underperforming stock in your portfolio can be very risky, as you could be setting yourself up for even greater losses. Below are three stocks that have not been doing well this year and that investors may be better off just selling:

Bombardier, Inc. (TSX:BBD.B) reported yet another disappointing quarter last week. Not only did the company post a net loss of $36 million, which was down from a $70 million profit a year ago, but it also adjusted down its forecast for the year as well.

Free cash flows are also expected to be worse than expected for the year as the company stated it would be investing more money into its rail division.

The marijuana industry is fast-paced is more ways than you can imagine. Sure, growth estimates for the industry are through the roof, with various Wall Street estimates suggesting that global annual sales could grow to between $50 billion and $200 billion in roughly a decade's time. But this isn't the only dynamic aspect of legal cannabis.

Nearly two-thirds of Americans support marijuana legalization, a new IBD/TIPP poll found, and nearly one-fifth of investor households consumed cannabis in the past six months as more marijuana stocks appear on exchanges.

Consistent with polling elsewhere, 63% of Americans said marijuana should be legalized. Support for marijuana legalization was highest in the West, at 72%, and lowest in the Northeast but still a majority at 55%.

Only 46% of Republicans said weed should be legalized. That compared to 66% of self-described Independents and 75% of Democrats who said it should be legal.

Aphria interim CEO Irwin Simon said Monday that the biggest opportunity that he sees in the Canadian cannabis market is converting consumers from the black market to the legal one.

“There’s a $5 billion market out there [where] products are sold into the illicit market,” he said in a one-on-one with Mad Money’s Jim Cramer.  “The company is working on “taking that away from the illicit market and building your brands and building consumer confidence.”

The Glasgow-based company produces test kits that test foodstuffs such as milk, spices, cereals and animal feed for toxins, including mycotoxins, microorganisms and GMOs. Recently developed methods have been applied to plant products such as herbal medicines, which have structural similarities to cannabis.

Claire Milligan, product manager at R-Biopharm Rhône, said: "Just like any other ingestible item, strict consumer protection legislation requires that cannabis products, including oils, cookies and cannabis plants themselves, should be tested for the presence of dangerous toxins.

Cannabis stocks have had one heck of a volatile year. This group of equities easily outperformed the broader markets in the first half of 2019, but a spate of scandals and unexpected managerial shake-ups ultimately sent valuations crashing back to Earth during the summer months.