• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Cannabis Leader Canopy Growth Can Climb Higher

Here's how to play CGC.
By BRUCE KAMICH
Jan 20, 2021 | 09:32 AM EST
Stocks quotes in this article: CGC

During Tuesday's Lightning Round segment of Mad Money one caller asked Jim Cramer about Canopy Growth Corp. (CGC) . "I've got a feeling that Canopy is the way to play this group," responded Cramer. 

 
We last looked at CGC back on Jan. 6 and wrote that, "I have no idea if a Democratic controlled Congress is more in favor of legalization of cannabis but the chart of CGC is bullish. Continue to hold longs in previous recommendations." 
 
In the daily Japanese candlestick chart of CGC, below, we can see a small area of consolidation in the $32-$30 area before a "step up" to a new high for the move up from early October. The slopes of the 50-day and 200-day moving averages remain positive.
 
The On-Balance-Volume (OBV) line has risen since October and confirms the price gains. The Moving Average Convergence Divergence (MACD) oscillator is bullish and only shows some slight narrowing in recent days.  
 
 
In the weekly Japanese candlestick chart of CGC, below, we can see that prices made a base over the past 18 months. The slope of the 40-week moving average line is positive.
 
The OBV line shows strength from October 2019. The MACD oscillator finally turned bullish in October 2020 as the indicator crossed above the zero line. 
 
 
In this Point and Figure chart of CGC, below, we used daily price data to make the X's and O's. Here we can see a potential price target in the $48 area.  
 
 
 
Bottom-line strategy: Continue to hold longs from previous recommendations. Raise stops to a close below $30. Our nearest price target is $48 for now. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Mad Money | Cannabis

More from Stocks

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

When Times Are Tough, These 3 Mega-Caps Should Deliver the Dividends

Bob Ciura
Jun 24, 2022 1:00 PM EDT

Here's why in recessions and bear markets, the right mega-cap stocks can offer security -- and good yields.

Atlassian Is Now in the Latter Stages of Its Decline

Bruce Kamich
Jun 24, 2022 12:22 PM EDT

Let's check the charts and indicators.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login