Canopy is in a defined downtrend, and has been trading below it's 21 day EMA since mid August with diminishing volume. Note: earnings release is early November, and the stock has consistently sold off heavily on recent earnings reports off the back of low demand, high supply, and the natural constraints of scaling the edibles/drinks business, among other constraints.
The industry has taken a beating with favorites like Aphria down 90% plus from past highs. Aphria's recent earnings report was a monster disappointment, and sent the stock tumbling 20% plus in a single day. I've seen moves of similar magnitude to the downside in Canopy off the back of recent, and similarly disappointing earnings reports. I suspect just as we've witnessed before, the stock will be pumped into earnings, only to be hammered lower once again.
Stay tuned.
Michael
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The industry has taken a beating with favorites like Aphria down 90% plus from past highs. Aphria's recent earnings report was a monster disappointment, and sent the stock tumbling 20% plus in a single day. I've seen moves of similar magnitude to the downside in Canopy off the back of recent, and similarly disappointing earnings reports. I suspect just as we've witnessed before, the stock will be pumped into earnings, only to be hammered lower once again.
Stay tuned.
Michael
If you like our analysis, please hit the Like button and subscribe to our profile so you don't miss our new analysis and updates.
The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.
