Canopy Growth Looks Like It's Ready To Break Out And Change Directions

Canopy Growth Corp. CGC shares are trading higher Tuesday along with other cannabis stocks.

Canopy Growth closed up 8.6% at $14.34.

Canopy Growth Daily Chart Analysis

• Shares are nearing pattern resistance and could see a breakout within the coming days.
• The stock has been falling the past few months while being condensed between narrowing highs and lows. The stock currently sits at pattern resistance, and a day with above average volume could let the stock see a breakout and trend change.
• 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 been pushing higher and now sits at 50. This means the stock is now seeing equal amounts of buying and selling pressure.

What’s Next For Canopy Growth?

Bullish traders would like to see a day where the stock trades higher with above average volume. This could let the stock see a breakout above resistance and a possible long-term trend change. Bulls are also looking to see the stock cross above the moving averages for a change in sentiment.

Bearish traders would like to see the stock fade lower and fall below the pattern support. Bears look to be in control of the stock in the current state it’s in. Bears want to see the stock stay below the moving averages and be unable to break above pattern resistance.