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Canopy Growth Corp: Taking Off like a Rocket into 2020 | $CGC
The past year has been absolutely hellish for Canopy Growth Corp. (NYSE: CGC) and it’s shareholders. This producer, distributor and seller of cannabis operates primarily out of Canada. The company is clearly the most dominant player in the marijuana industry; carrying the highest market cap out of all the elite players at $8.03 billion. CGC currently has 346,658,913 shares outstanding and what we still consider to be a very undervalued price at $23.16 per share.
It is No Surprise To Us that $CGC Would Be the One to Lead the Surviving Companies Out of the Biggest Bear Market that the #MJIndustry Has Ever Seen.
From the Daily Chart, we can see a Very Well-Defined Inverse Head and Shoulders Pattern had Developed and Today’s Breakout on High Volume is Confirmation.
- Stoch has recovered from a severe selloff after sector and managerial unrest.
- Breakout has hit Fibonacci and horizontal support which continues to the $24.75 level.
- Targets have been highlighted and particular attention should be paid to gap within the chart @$29.62.
The Daily Indicators offer Some Reassurance to a Bullish Sentiment:
- RSI has formed a well-respected base.
- MACD has crossed above Zero line a short covering signal.
- Histogram has turned bullish and turned green.
- On Balance Volume (OBV) has had a strong reversal and remains above Zero Line
- Momentum indicator has moved strongly above Zero.
The Weekly Chart has a Few Very Bullish Characteristics:
- 200-day moving average now support.
- 7 & 12 moving averages have crossed bullishly, which historically has proved to be a good buy signal.
- MACD had crossed Bullishly, suggesting a sustained trend change.
- Histogram rising in bullish trajectory.
Targets to Consider:
Short-term: $26.92 – To Fibonacci extension 1-2-1 target.
Medium-term: $29.62 – To gap fill start.
Longer-term $31.29 – To gap close and overall Fibonacci .382 retrace level.
Above multiple horizontal and Fibonacci retrace level at approximately $24.75.