Will Canopy Growth Stock See A Bounce, Trend Change Soon?

Canopy Growth Corp. CGC shares are trading higher Thursday after the company announced that it plans to acquire Wana Brands. 

Canopy Growth stock was up 4.25% at $13.86 Thursday afternoon.

Canopy Growth Daily Chart Analysis

• The stock looks to be nearing resistance in what technical traders call a falling wedge pattern.
• The stock has been falling the past few months while being condensed between narrowing highs and lows. The stock is nearing the end of the pattern where it may see a large move in either direction with an above average volume day.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
• The stock may find resistance near either of these moving averages in the future.
• The Relative Strength Index (RSI) has started to curl higher and sits at 46. This shows that the stock is starting to see more buyers move into it, although there are still more sellers in the stock overall.

See Also: Why Canopy Growth Shares Are Moving Higher Today

What’s Next For Canopy Growth?

Bullish traders want to see the stock break above the pattern resistance and be able to hold above it. This could cause the stock to see a bullish push and a change in trends. Bulls would also like to see the stock cross back above the moving averages for a possible change in sentiment.

Bears are looking to see the stock continue to trend down and fall below the pattern support. This could cause the stock to see a further bearish move in time if the stock can see a period of consolidation below the pattern support.