Buz Investors CGC Stock Set to Surge The gyrations in Canopy Growth Corp (TSE:CGC, CVE:CGC) stock have settled down over the last few weeks and volatility has contracted. I honestly believe that this little lull that has been created is only temporary and will not last. This is perhaps the

$CGC Stock Set to Surge Canopy Growth Corp

 CGC Stock Set to Surge Canopy Growth Corp

  • Buz Investors CGC Stock Set to Surge The gyrations in Canopy Growth Corp (TSE:CGC, CVE:CGC) stock have settled down over the last few weeks and volatility has contracted.
  • I honestly believe that this little lull that has been created is only temporary and will not last. This is perhaps the calm before the volatility storm. The question that remains is, will this be a bearish storm or a bullish one that grips CGC stock?
  • If you have followed any of my previous publications on licensed marijuana producers or Canopy Growth stock, then I probably sound like a broken record.

CGC Stock Set to Surge




 

Buz Investors CGC Stock Set to Surge The gyrations in Canopy Growth Corp (TSE:CGC, CVE:CGC) stock have settled down over the last few weeks and volatility has contracted. I honestly believe that this little lull that has been created is only temporary and will not last. This is perhaps the

CGC Stock Set to Surge  I continue to believe that the electricity powering this turntable is the speculation surrounding the legalization of marijuana. Last year, the government promised the legal framework behind legalized marijuana and the recreational market that will follow. 2017 is now here, and that announcement from the government is now only months away.

I have stated that once this news finally hits the news wires, this event will mark the point where the electricity is cut, the record stops spinning, and the music stops. I expect a sell-off in Canopy Growth stock will ensue as the “buy on rumor sell on news” event plays out.

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CGC Stock Set to Surge

This CGC stock chart above illustrates the numerous constructive patterns that have littered this chart. The structure of the rally contains healthy bullish price action. The healthy price action consists of impulse waves that take a stock price higher, and consolidation waves, where the new higher prices are digested.

Consolidation waves are essential in a healthy trend because they alleviate any overbought conditions that may have developed, and set up the next prevailing impulse wave.

That ever-elusive constructive consolidation pattern that I have been looking for has finally shown its face, and the completion of the consolidation wave suggests that a new impulse wave that will take CGC stock higher is now in development.

 

Safety in Numbers Drives Canopy Growth Corp. Higher

Investors in Canopy Growth Corp. (TSX:CGC) and other publicly traded marijuana businesses in both Canada and the U.S. are only too aware of the growth potential of legal cannabis.

It’s huge.

U.S. estimates by investment bank Cowen and Company suggest cannabis sales will increase at a compound annual growth rate of 23% over the next decade to US$50 billion. In Canada, it’s estimated that 5.2 million Canadians will consume legalized pot annually by 2021.

As Canada moves towards legalizing the recreational use of marijuana, expected sometime in 2019, the U.S. federal government continues to drag its heels on the subject, despite the fact there are now 28 states with legalized medical marijuana and eight where weed is legal recreationally for those 21 or older.

Jeff Sessions, Donald Trump’s nominee for attorney general, is absolutely opposed to marijuana, suggesting in an April 2016 senate hearing that traffic fatalities in some states where marijuana was legal were up by 20%. Data from Colorado’s experience, according to FactCheck.org, suggests marijuana-related traffic deaths, hospital visits, and school suspensions have definitely increased since marijuana was legalized for recreational use back in 2012.

 

Jimmy Mengel of The Crow’s Nest films a behind the scenes interview with Canopy Growth’s CEO, Bruce Linton. Bruce covers all the bases, and shares everything that investers should know about Canadian Cannabis.
Jimmy visits the Canopy Growth factory to get the inside scoop on the process of growing Marijuana legally. Throughout the tour, he explores the nursery, grow room, and flowering room, in hopes to uncover the secret to Canopy Growth’s success in this ground-breaking industry.

 

 

Pharmaceuticals  stocks ( CGC)  ( JNJ ) ( MRK ) ( GSK ) ( celg )  ( gild )




Canopy Growth Corp: This Determines If CGC Stock Will Fly

Canopy Growth Corp: This Determines If CGC Stock Will Fly

Canopy Growth Corp: This Determines If CGC Stock Will Fly

  • Buz Investors  CGC Stock Will Fly (TSE:CGC, CVE:CGC) stock in which I outlined the signals that are now suggesting that lower prices are set to prevail. The problem with this outlook is that it goes against the premise that I believe is fueling the move in this entire sector.
  • I have stated numerous times that I believe that the bullish run in CGC stock and the other licensed producers in this sector will continue until the government finally announces the framework regarding recreational marijuana. Such an event causes a “buy on rumor sell on news” event.
  • These conversations have caused me to revisit the price chart of Canopy Growth stock and apply what I would need to see in order to say that a constructive pattern has developed and that a bullish run can proceed.

CGC Stock Will Fly

Canopy Growth Corp: This Determines If CGC Stock Will Fly

CGC Stock Will Fly I have stated numerous times that I believe that the bullish run in CGC stock and the other licensed producers in this sector will continue until the government finally announces the framework regarding recreational marijuana. Such an event causes a “buy on rumor sell on news” event.

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CGC Stock Will Fly

These conversations have caused me to revisit the price chart of Canopy Growth stock and apply what I would need to see in order to say that a constructive pattern has developed and that a bullish run can proceed.

The first indicator comes in the form of a broken uptrend line. This uptrend line was created by connecting the troughs on the price chart. This trend line supported the price of CGC stock as the trend toward higher prices accelerated.

Even though the uptrend was broken, the current price action could still be within the confines of a consolidation wave. In order for the pattern to become constructive, CGC stock would have to close above resistance outlined by the consolidation triangle, which currently sits at $9.80.

The moving average convergence/divergence (MACD) indicator in the lower panel is converging, and a bullish signal would coincide with a move above resistance. MACD is a simple and effective trend-following momentum indicator. Signal-line crossings are used to distinguish between bullish and bearish signals.

Pharmaceuticals  stocks ( CGC)  ( JNJ ) ( MRK ) ( GSK ) ( celg )  ( gild )




Canopy Growth: This Is Why Marijuana Stock Fell Today

Canopy Growth Corp: Awaiting a Bullish Pattern in CGC Stock

Canopy Growth Corp: Awaiting a Bullish Pattern in CGC Stock

  • Buz Invwstors Bullish Pattern in CGC Stock  (TSE:CGC, CVE:CGC) announced on December 1, 2016, that it would be acquiring a competitor in Mettrum Health Corp(CVE:MT) for an all-stock deal. Initially, both CGC stock and MT stock advanced on this news, with Mettrum stock enjoying a 38% gain to start the day.
  • But selling quickly ensued and, in the days ahead, almost the entire price premium paid to Mettrum shareholders was erased. The crazy swings and the volume-induced volatility that began late this year are set to continue. Canopy Growth Corp and other licensed marijuana producers have become a favorite among day traders who seek such volume and volatility.
  • I have said it many times and will say it again. A bull market in this sector will continue as long as the price chart remains constructive. In order for the price to remain constructive, a bullish tailwind

Bullish Pattern in CGC Stock

Buz Invwstors Bullish Pattern in CGC Stock  (TSE:CGC, CVE:CGC) announced on December 1, 2016, that it would be acquiring a competitor in Mettrum Health Corp<span data-recalc-dims=(CVE:MT) for an all-stock deal. Initially, both CGC stock and MT stock advanced on this news, with Mettrum stock enjoying a 38% gain to start the day." width="700" height="421" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2016/12/canopy.png?w=700 700w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2016/12/canopy.png?resize=300%2C180 300w" sizes="(max-width: 640px) 100vw, 640px" />

Bullish Pattern in CGC Stock I believe that the “buy on rumor, sell on news” mantra is driving money into this sector as investors continue to speculate about the government’s policies regarding marijuana legalization. I believe that, once the government comes out with details regarding legalization, this will cause the speculative hot money to head for the exits. As a result, a “buy on rumor, sell on news” event is created.

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Bullish Pattern in CGC Stock

Since the trend began to accelerate in October, the CGC stock price has been supported by an uptrend line. This uptrend line is created by connecting the troughs on on the price chart. There should be no mistaking an uptrend from a downtrend because the trend moves from the lower left to the upper right.

As long as CGC stock remains above this trend line, the bull market in Canopy growth stock is intact. In such situations, I would be looking for a bullish constructive pattern to set trading strategies against. One has not presented itself yet, but I am hopeful that one will.

Pharmaceuticals  stocks ( CGC)  ( JNJ ) ( MRK ) ( GSK ) ( celg )  ( gild )




Canopy Growth Corp: The Wild Ride in CGC Stock Continues

Canopy Growth Corp: The Wild Ride in CGC Stock Continues

Canopy Growth Corp: The Wild Ride in CGC Stock Continues

  • Buz Investors The Wild Ride in CGC Stock The wild ride in Canopy Growth Corp (TSE:CGC) continues, and it is starting to get gut-wrenching. If there was ever a literal meaning of bull market, this is it.
  • The volatility in price is acting like a bull trying to throw an investor off its back. From the outside looking in, it is quite amusing. But for the investor, this is turning into quite an emotional roller coaster ride.
  • The driving force behind all this speculation is the legalization of cannabis, and the billions of potential dollars the recreational market will produce. This is the “buy on rumor, sell on news” mantra that I have mentioned numerous times

The Wild Ride in CGC Stock

The Wild Ride in CGC Stock

The Wild Ride in CGC Stock Canopy Growth stock would need to find price support around a specific price point. The next morning, CGC stock opened lower, and on the support level I outlined. CGC stock proceeded to close the day at $10.44, up 26.5%. Even though support was found where it was supposed to, the constructive pattern I seek has yet to develop.

The CGC stock chart above illustrates that the Fibonacci 61.8% retracement level supported price as it quickly reversed the selling pressure when it was hit. This was the level of support I highlighted in my previous report that needed to hold. If this level holds, the probability that a constructive pattern develops increases.

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The Wild Ride in CGC Stock

Fibonacci retracement numbers (highlighted in green) are a very popular tool used by many technical traders.  This tool is used to identify countertrend price objectives. In theory, when a stock pulls back from a primary trend, shares will retrace approx 50%-62% of the primary move. This zone usually offers support, as traders will be eyeing this area as an area to enter long positions, or cover short positions.

CGC Stock: Rodeo Show

Canopy Growth Corp: The Wild Ride in CGC Stock Continues

The blue box is what traders refer to as trading into the box. When shares fall into the box, it signals traders to cover their short positions and start building a long position. Canopy Growth stock conformed to the box perfectly. Using this technique to purchase shares proved to be a winning strategy. A long position would have generated a paper profit of 26.4%, if I assume an average cost of $8.50, based on the midpoint of this range.

 

Canopy Growth Corp: This Will Dictate Where CGC Stock Goes Next

Canopy Growth Corp: This Will Dictate Where CGC Stock Goes Next

Canopy Growth Corp: This Will Dictate Where CGC Stock Goes Next

  • Buz Investors Bullish Where CGC Stock Goes Next The wild ride in marijuana stock continues. Unfortunately the price action since Wednesday of last week has been to the downside, and the likelihood that a blow-off top has been put in continues to grow.
  • Canopy Growth Corp (TSE:CGC, CVE:CGC) stock is down 34.5% on the week and there have only been two days worth of trading.
  • I have been following this sector since mid-summer, as these stock began setting up a run to the upside. The premise that I believe is moving these stocks has to do with the anticipation of the recreational market that the government promised to legislate.

Where CGC Stock Goes Next Patience is Warranted

Where CGC Stock Goes Next

 

Where CGC Stock Goes Next This is the classic “buy on rumor, sell on news” investment play and it is not over until that fateful day when the government outlines the details of how this new lucrative market is going to work.

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Where CGC Stock Goes Next

If this premise is true, perhaps there is some fuel left in these stocks. But I have said it before and I will say it again: it is best to wait for a constructive pattern to develop before entering a position in Canopy Growth stock.  The benefits of such a tactic are manyfold, and the ability to manage risk is the most important.

Where CGC Stock Goes Next Patience is Warranted

The CGC stock chart above illustrates the constructive price action that has propelled this bull market to great heights. Looking at this short-term price chart, we can see that the price encountered resistance at $5.85 in early October, and it took three attempts before this level was finally broken.

When the price did break out, it quickly shot up to $7.30 before it paused.
This price action is constructive because CGC stock returned to backtest the previous level at $5.85 that stood as resistance, which is now a level of support.