Canopy Growth Corp(CGC) closed at $17.53 gaining $1.94(+12.44%) on the trading session today. Price closed above the 38.2% Fibonacci retracement level which had been acting as resistance for the past month and is bullish move considering how long it was pegged below the 38.2% level. While this is a bullish move, we need to see price close above the 50% Fibonacci retracement level which is where price hit resistance on todays move. The 50% Fibonacci level is the midpoint between the total Fibonacci range from the January high of $25.97 to the March low of $9.00. Price trending above the 50% level indicates a bullish trend while price trending below the 50% level indicates a bearish trend. Should price see more gains tomorrow that would be a bullish sign, but a move above the 61.8% Fib level is needed to signal uptrend continuation. Worth noting is that todays price candle closed green after nearly a month of gray price candles. Green indicates that price momentum is now bullish according to my candle color algorithm.
The Relative Strength Index(RSI) shows the green RSI line rising above the 50 level which is the midpoint of the total RSI range. An RSI reading above 50 indicates short-term bullish momentum while a reading below 50 indicates short-term bearish momentum. The RSI crossed above the 60 level today which indicates that there is strong momentum behind price right now. The purple RSI signal line is also rising which indicates intermediate-term momentum is bullish as well. In general, you want to see the green RSI line rising above the purple signal line, and for both lines to be above the 50 level as a sign of bullish momentum.
The Price Percent Oscillator(PPO) shows the green PPO line rising above the purple signal line, both lines trending up and both lines crossing above the 0 level. This indicates bullish momentum in the short-term as a PPO reading above 0 is considered bullish while a PPO reading below 0 is considered bearish.
The Average Directional Index(ADX) show the green +DI line rising above the purple -DI line which indicates positive direction behind price when comparing recent highs to recent lows in price. The histogram behind the DI lines is still low which indicates relatively weak strength behind price. In general during a price move higher, you want to see the green +DI line above the purple -DI line and the histogram bars rising above the white dotted line at the 25 level as an indication of bullish strength behind price.
The volume indicator shows that volume today was at its highest level since March 26th, and also in a recent trend of increasing volume. Rising volume as price moves higher is a bullish sign. Today’s volume bar is bright green and indicates that volume and price are both higher than they were 10 days ago and is considered a bullish price/volume day.
Overall, the move today is bullish as price broke above 38.2% resistance, the lower momentum and trend indicators are all bullish, and volume is increasing over the past few days and broke to a new 1-month high today. The tentative stop-loss level for long trades is shown in blue and is just below the most recent consolidation lows prior to the breakout today.
The Relative Strength Index(RSI) shows the green RSI line rising above the 50 level which is the midpoint of the total RSI range. An RSI reading above 50 indicates short-term bullish momentum while a reading below 50 indicates short-term bearish momentum. The RSI crossed above the 60 level today which indicates that there is strong momentum behind price right now. The purple RSI signal line is also rising which indicates intermediate-term momentum is bullish as well. In general, you want to see the green RSI line rising above the purple signal line, and for both lines to be above the 50 level as a sign of bullish momentum.
The Price Percent Oscillator(PPO) shows the green PPO line rising above the purple signal line, both lines trending up and both lines crossing above the 0 level. This indicates bullish momentum in the short-term as a PPO reading above 0 is considered bullish while a PPO reading below 0 is considered bearish.
The Average Directional Index(ADX) show the green +DI line rising above the purple -DI line which indicates positive direction behind price when comparing recent highs to recent lows in price. The histogram behind the DI lines is still low which indicates relatively weak strength behind price. In general during a price move higher, you want to see the green +DI line above the purple -DI line and the histogram bars rising above the white dotted line at the 25 level as an indication of bullish strength behind price.
The volume indicator shows that volume today was at its highest level since March 26th, and also in a recent trend of increasing volume. Rising volume as price moves higher is a bullish sign. Today’s volume bar is bright green and indicates that volume and price are both higher than they were 10 days ago and is considered a bullish price/volume day.
Overall, the move today is bullish as price broke above 38.2% resistance, the lower momentum and trend indicators are all bullish, and volume is increasing over the past few days and broke to a new 1-month high today. The tentative stop-loss level for long trades is shown in blue and is just below the most recent consolidation lows prior to the breakout today.