CGC closes within prior day's range after lackluster session
Canopy Growth Corporation (CGC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CGC ended the month -6.97% lower at 16.16 after losing $0.18 (-1.1%) today on low volume, strongly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CGC as at Jun 30, 2020):
Tuesday's trading range has been $0.38 (2.34%), that's far below the last trading month's daily average range of $0.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CGC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
Canopy Growth closed back below the 100-day moving average at 16.24. When this moving average was crossed below the last time on June 26th, CGC actually gained 2.45% on the following trading day. After having been unable to move above 16.39 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 16.33.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 15.32 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Canopy Growth. Out of 36 times, CGC closed higher 58.33% 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 52.78% with an average market move of 2.64%.