On Friday, before market, Canopy Growth (CGC) is anticipated to release 4Q LPS of $0.52 on revenue of approximately $128.9M vs. $94.1M last year. The company cultivates and sells medicinal and recreational cannabis, and its current analyst consensus rating is 10 buys, 11 holds and 0 sells, according to Bloomberg.
From a technical point of view, Canopy Growth's stock price is holding above the 200-day moving average which price gapped over at the start of the trading week on Tuesday. Price has been advancing in a rising channel that began to form in mid-March. The RSI has also been rising on top of an upward trend line and is currently above 70. Price has upward momentum and is breaking to the upside of the upper trend line and on the way to the $25.00 resistance level. If price can break above the $25.00 level we may see a move towards the $29.00 level. If price cannot manage to hold above the 200-day moving average and falls below its last peak and weekly low around $18.25, then price could potentially make its way to the lower trend line.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.