Canopy is on fire today, and is up 20% plus on the week, off the back of optimism over the possible decriminalization of Marijuana in the United States. Last night at the Vice Presidential Debate, Kamala Harris made mention of the dems plan to bring this to fruition, should they win the election in November. This has the entire sector hot today, without exception, as one can expect.
It looks as though we may hit the 200 day MA at 23.30 this week before we see profit taking, and the shorts re-entering. It's also important to note that we're nearing major resistance with the top of the downward channel a stones throw away. I suspect we may see a reversal of the squeeze next week once the bulls have achieved these levels. If there's enough momentum to pierce the upper downtrend line, and the 200 day MA, the upside could be massive, particularly seeing as earnings are not until early November.
We shouldn't rule out the possibility of a broad market sell off, given the high number of potential catalysts floating around at the moment. This could heavily affect Canopy's price action, and the positive sentiment around it's valuation.
I appreciate your time today guys. Thanks, Michael.
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It looks as though we may hit the 200 day MA at 23.30 this week before we see profit taking, and the shorts re-entering. It's also important to note that we're nearing major resistance with the top of the downward channel a stones throw away. I suspect we may see a reversal of the squeeze next week once the bulls have achieved these levels. If there's enough momentum to pierce the upper downtrend line, and the 200 day MA, the upside could be massive, particularly seeing as earnings are not until early November.
We shouldn't rule out the possibility of a broad market sell off, given the high number of potential catalysts floating around at the moment. This could heavily affect Canopy's price action, and the positive sentiment around it's valuation.
I appreciate your time today guys. Thanks, 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.
Comment:
Canopy making a run for the 200 day as expected. Let's see if we can get there in the next 5 minutes, my guess is yes. Shorts are scrambling for the exit. But, at the same time, if I were holding a large position right now, I'd be dumping into the close, so it's anyone's guess.
Comment:
We closed at the 200 day MA today, which was the result of a massive short squeeze. We're up over 13% on the day, and over 25% this week. I expected a pre earnings pump, but a month out from earnings, and sitting this close to resistance, it's anyone's guess where we go next week. Let's see how things develop tomorrow, and if the bulls can hold on to today's gains. This squeeze may have more juice in the tank, but the risk has definitely shifted to the downside in my opinion.
Thanks for your time today guys, and enjoy your evening. Cheers, Michael.
Thanks for your time today guys, and enjoy your evening. Cheers, Michael.
