We are approaching the same point as last year, canopy made major gains in November 2016 and December and then receded into a correction followed by a bull trap in February 2017 and subsequent spring-summer downward selling pressure. The reversal we saw from the summer prices was due to canopy performing and executing on their plans. The days of heavy speculation (early 2015- mid 2017) are ending and the volatility is reducing in degrees to more friendly levels, which in turn is bringing in new interest from baby boomer generation investors who seek stability and manageable growth as well as institutional investors who are more comfortable with the industry now compared to two years ago or even a year ago. Industry wide positive catalysts ( supply deals, expansion completions,mergers) , increasing institutional demand and major industry partners ( big liquor, big pharma, big tobacco) are driving the industry to new heights.
The reality is we are going to see periods of corrections/pullbacks, but as the chart indicates so far, each correction and pullback allowed for the healthy development of the overall upward trend. Personally the next two years for canopy look very promising, and we are going to see brand new 52 week highs each year.
The reality is we are going to see periods of corrections/pullbacks, but as the chart indicates so far, each correction and pullback allowed for the healthy development of the overall upward trend. Personally the next two years for canopy look very promising, and we are going to see brand new 52 week highs each year.