WEED Stock Is Bullish There have been a number of developments on theCanopy Growth Corp

One More Hurdle and WEED Stock Is Bullish Once Again

WEED Stock: So Close, Yet So Far

 WEED Stock Is Bullish There have been a number of developments on theCanopy Growth Corp

WEED Stock Is Bullish There have been a number of developments on theCanopy Growth Corp (TSE:WEED) stock chart that are worth noting, and this is why I have decided to focus on WEED stock once again. The last time I focused on Canopy Growth stock, I mentioned that an opportunity was approaching, and that I would be looking for a number of indications to suggest that momentum has finally shifted, indicating that a bullish move was in the making. For those inclined, that report was titled “An Opportunity in WEED Stock Is Approaching,” and it was published on June 8, 2017.

Since the stock peaked in November of last year, the shares have traded with a bearish bias, where lower prices have prevailed. The trend towards lower prices began to accelerate after the government announced its framework with regards to marijuana legalization. The sell-off that followed this announcement was not even the slightest bit of a surprise, and anyone who has read my publications on marijuana stocks is well aware that I warned that such an outcome was likely to occur.

As I mentioned in my previous publication, I am looking for a number of indications to swing into bullish alignment, which will suggest that the tide is turning. The good news is that these indications have turned bullish, so progress is being made.

The following Canopy Growth stock chart illustrates these indications.



WEED Stock Is Bullish

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weededd

Chart courtesy of StockCharts.com

The indications I have highlighted involve a simple trend line and the moving average convergence/divergence (MACD) indicator.

The simple trend line, which is highlighted on the stock chart above, defines the bearish trend that began its development after the share price peaked in November 2016 at $17.86. This trend line is created by connecting the peaks on the WEED stock chart. It acted as a level of price resistance that prevented the stock price from advancing.

In my previous report, I outlined that I needed these two indications to swing into bullish alignment in order to generate a bullish view, which has occurred. The problem is that I must refrain from taking on a bullish view because WEED stock is trading below a key metric that needs to be overcome.

The following Canopy Growth stock illustrates this key metric.

weededd1

Chart courtesy of StockCharts.com

The key metric I am still waiting on is the 200-day moving average. This moving average acts a dividing line that separates bullish investments from bearish ones.

In October 2015, the stock broke above the 200-day moving average and an epic move to the upside ensued. The scope of the rally that followed reiterates the importance and significance of a stock trading above this metric.

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