Earnings Play: Canopy Growth

Market chart showing uptrend
On Friday, before market, Canopy Growth (CGC) is anticipated to release 4Q LPS of $0.52 on revenue of approximately $128.9M vs. $94.1M last year. The company cultivates and sells medicinal and recreational cannabis, and its current analyst consensus rating is 10 buys, 11 holds and 0 sells, according to Bloomberg.     

From a technical point of view, Canopy Growth's stock price is holding above the 200-day moving average which price gapped over at the start of the trading week on Tuesday. Price has been advancing in a rising channel that began to form in mid-March. The RSI has also been rising on top of an upward trend line and is currently above 70. Price has upward momentum and is breaking to the upside of the upper trend line and on the way to the $25.00 resistance level. If price can break above the $25.00 level we may see a move towards the  $29.00 level. If price cannot manage to hold above the 200-day moving average and falls below its last peak and weekly low around $18.25, then price could potentially make its way to the lower trend line. 



Source: GAIN Capital, TradingView
Related tags: Equities earnings

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