CGC closes below its opening price unable to hold early session gains
Canopy Growth Corporation (CGC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CGC finished the week 14.72% higher at 22.52 after surging $3.00 (15.37%) today on high volume, notably outperforming the S&P 500 (0.18%) following today's earnings report. This is the biggest single-day gain in over nine months. Trading $0.73 higher after the open, Canopy Growth was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CGC as at Feb 14, 2020):
CGC reported earnings of $-0.27 per share before today's market open. With analysts having expected an EPS of $-0.36, Canopy Growth Corporation beat market expectations by 25.0%. The company's last earnings report was released on Nov. 14, 2019, when Canopy Growth Corporation reported earnings of $-0.82 per share missing market expectations by -203.7%.
Friday's trading range has been $2.18 (9.41%), that's far above the last trading month's daily average range of $1.34. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CGC.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 10th, CGC actually gained 12.51% on the following trading day.
The market managed to close back above the 100-day moving average at 20.71 for the first time since February 6th. Unable to break through the key technical resistance level at 23.57 (R1), the stock closed below it after spiking up to 23.90 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Canopy Growth. Out of 1 times, CGC closed higher 100.00% of the time on the next trading day after the market condition occurred.