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.
