What is the News Catalyst that is Causing Canopy Growth Corp Stock (CGC) to Move up the Charts So Rapidly?
The catalytic news that could’ve catapulted Canopy Growth (NYSE: CGC) stock has finally come and has catapulted the stock to a whopping 7.68% gain today November 6, 2018 1:34pm, ET.
As a result of this catalytic news CGC looks like it is heading toward 55.91 and possibly higher (55.71, 56.56, and 57.41 are possible targets) before a reversal becomes inevitable. In fact, $71.90 per share is the next target that is possible if the stock continues its hyperbolic move up the charts.
This price target however, may take a little longer to achieve simply because CGC holders like to take profits when the time is right. So, there could be a profit-taking time that presents itself way before the $71.90 per share price point is reached. In fact, there are a few price points that could appear above the $57.41 price level. They are $69.35, $70.02, and $71.05. In fact, those prices are not at all arbitrary, they have some credence behind them. Our trading strategy has a very high level of reliability.
There could be many price levels above our original support zone of $36.71. Therefore, we would buy the stock if it gets to $36.71 and sell it when it gets to our hypothesized support zone of 44.88 or anywhere close. In past analysis, we have noted that point.
However, the way things are looking with the rapid upward movements of CGC, we might be able to wait until the stock hits our hypothesized take-profit zone of 44.88, but as we have mentioned before, greedy traders are losing traders. So, stay glued to that Mstardom Finance magic chart found on the charts page to see exactly when to take profit. Change the time periods if needed on the chart to stay on top of things. Remember, any symbol including stocks or forex can be written in the symbol field to be analyzed. The chart is already setup with the necessary indicator to let traders know when to take profit. Profits must be taken when profits are in traders’ trading accounts. If you need more understanding of how to read the chart on our charts page, please contact us via our contact page.
A quick glance at the chart suggests that the stock has gathered upward momentum and based on our trading strategy could possibly get to our profit-taking level before its all said and done. We know that it is voting day in the United States. So, anything can happen.
The catalytic news that has started it all has caused six straight gains, which corresponds to the 6 days that have passed since the stock has started its hyperbolic rise into the stratosphere. So, what was this catapultic news, we so diligently speak about. Well, plain and simple, it was the news released on November 1, 2018 which stated that, “Marijuana Producer Canopy Closes $4 Billion Investment from Constellation, 5:31 pm ET November 1, 2018,” [Market Watch].
The details of this catapultic news goes as follows:
“Canada-based weed producer Canopy Growth Corp. (WEED.T) said late Thursday that the C$5 billion ($4 billion U.S.) investment from Corona-maker Constellation Brands Inc. (STZ) has closed following approval from its shareholders and government regulators in Canada. The $4 billion investment announced over the summer gives Canopy an enormous war chest with which it (http://www.marketwatch.com/story/marijuana-stocks-to-watch-canopy-growth-is-the-cannabis-businesss-4-billion-gorilla-2018-10-15) plans to use to tackle the market in Canada and abroad. The investment increases Constellation’s stake in Canopy to 37% and it has appointed two executives and two others to Canopy’s board of directors. Canopy stock ticked up 0.5% in after-hours trading and closed up 0.4% during the regular session to $37.03. The benchmark S&P 500 index gained 1.1% Thursday,” said Max Cherney.
Disclosure: I/We/Mstardom Finance holds shares (long) in CGC stock.
Disclaimer: ®Mstardom, Inc., Mstardom.com, Mstardom Finance does not provide investment advice.
Max A. Cherney; 415-439-6400; AskNewswires@dowjones.com
I am a Clinical Lab Scientist, entrepreneur, investor and trader (stocks and Forex). I enjoy writing and publishing articles online.