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
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
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.