Canopy Growth Corp. (CGC) has been recommended by Jim Cramer and it was mentioned again last night on his Mad Money program. Let's visit with the charts and indicators to see how things are shaping up for this cannabis stock.
In the daily bar chart of CGC, below, we can see prices in a large ascending triangle formation. CGC shows higher lows in December and April and roughly the same highs in the $50-$55 area going back to September. Trading volume has diminished through the pattern.
The On-Balance-Volume (OBV) line has declined with the move lower in October/December and it has mostly moved sideways since February. A volume surge should be seen if prices can break out over $55.
The Moving Average Convergence Divergence (MACD) oscillator is still above the zero line in positive territory and it should turn up to a fresh buy signal if prices make an upside breakout.
In the weekly bar chart of CGC, below, we can see that prices are above the rising 40-week moving average line.
The OBV line and the MACD oscillator should turn higher if prices turn up.
In this Point and Figure chart of CGC, below, we can see a breakout at $52 and an upside price target of $76. A rally to $53 should restart the bull move.
Bottom-line strategy: Aggressive traders could go long CGC on strength above $53. Risk below $43 looking for gains to the $75 area.