Canopy Growth Consolidates Gains Near Recent Highs as Cannabis Stocks Gain Momentum
Canopy Growth (CGC), Cronos (CRON) and Tilray (TLRY) have been very active lately. Canopy and Cronos stand out, as they continue along their bullish trends. These two cannabis stocks accelerated higher over the past 20 trading days, marking 52-week lows in late December.
Canopy Growth (CGC) has consolidated recent gains, twice forming pennants or triangle patterns near recent highs. Price action has kept a steady pace running higher then consolidating for a few days.
The 20/50d bullish cross suggests higher prices over the coming weeks, while RSI muscle shows the stock is overbought. The latter can stay overbought, especially if the stock breaks above 51.00 in the short-term.
CGC 60 Minute
The 60-minute chart illustrates the underlying trend that would need to break for our swing to stop working. Therefore, and considering the daily chart suggestions, we’ll look for a breakout above 51.00 that is confirmed by strength in the group. CRON and TLRY should move higher.
Cronos is another story. This stock turned in December as well, bolting higher without a respite. The recent breakout level delineated gives traders a measured move of approximately 8-9 points. or roughly 22-24. If CGC, TLRY and the majority of the cannabis stocks in the group rally together, CRON should achieve those targets in the short-term.
We have CGC common shares at the present time. We would entertain a new entry in CRON only after a visible base or flag forms. Unfortunately, I missed the breakout, while some of you in the trading room managed to get long this week. We’ll monitor all of them during the LIVE session.
Aurora Cannabis (ACB) is one of the cheaper stocks in the group that would set up a long position a break above the pivot high at 7.52 (+/-).
On a side note, the NFP report came in a lot stronger than anticipated, leaving CNBC and other financial media talking heads scrambling to explain their bearish stance of late. That said, most stocks are bullish.
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