CGC closes higher for the 2nd day in a row
Canopy Growth Corporation (CGC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CGC ended the week 22.45% higher at 19.42 after gaining $1.17 (6.41%) today on high volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 19.42 marks the highest recorded closing price since February 26th. Trading up to $0.78 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 18.50, the market confirmed its breakout through the prior session high after trading up to $0.98 above it intraday.
Daily Candlestick Chart (CGC as at May 22, 2020):
Friday's trading range has been $1.88 (10.23%), that's far above the last trading month's daily average range of $1.19. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CGC.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 18.65 (now S1), which is likely to act as support going forward. The last time this happened on May 15th, CGC gained 2.90% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 16.07.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Canopy Growth. Out of 132 times, CGC closed higher 60.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.88% with an average market move of 10.09%.