What's Going On With Weed Stocks Canopy Growth, Aurora Cannabis And Tilray?

Zinger Key Points

Cannabis stocks Canopy Growth Corporation CGC, Aurora Cannabis, Inc. ACB and Tilray Brands, Inc. TLRY shares are trading lower Wednesday after soaring following reports that the DEA will move to reschedule marijuana. 

The Details:

Cannabis stocks saw a short-lived rally Tuesday following reports that the DEA will move to reschedule marijuana from a Schedule I to a Schedule III substance. The DEA’s proposal would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than Schedule I substances. 

The proposal must be reviewed by the White House Office of Management and Budget and is subject to a public comment period before an official reclassification can be made. 

Canopy Growth shares surged more than 75% Tuesday, though the stock is giving back some gains Wednesday. Canopy's stock is down nearly 30%. 

Aurora Cannabis gained more than 25% following the report, though the stock is trading down by more than 20% Wednesday. 

Similarly, Tilray shares rose nearly 40% Tuesday, yet shares are trading 20% lower in Wednesday's session. 

Related News: What’s Going On With Rivian Automotive Stock?

CGC Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Canopy Growth, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Canopy Growth, the 200-day moving average sits at $5.89, according to Benzinga Pro, which is below the current price of $10.54. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CGC, ACB, TLRY Price Action: According to Benzinga Pro, Canopy Growth shares are down 29.4% at $10.50, Aurora Cannabis shares are down 21.4% at $7.25 and Tilray Brands shares are down 20% at $1.97 at the time of publication Wednesday.

Image: asdqwejkl from Pixabay

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CGCCanopy Growth Corp
$1.6321.6%

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