Canopy Growth Stock Forecast

Buy or Hold candidate since May 11, 2018 Gain 16.85%

No changes to the price of Canopy Growth stock on the last trading day (Thursday, 31st May 2018). During the last trading day the stock fluctuated 0% from a day low at $30.21 to a day high of $30.21. The price has been going up and down for this period, and there has been a 20.75% gain for the last 2 weeks.

The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $31.14 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 12.07% during the next 3 months and, with a 90% probability hold a price between $24.95 and $34.90 at the end of this 3-month period.

TWMJF Signals & Forecast

The Canopy Growth stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately $30.30. On a fall, the stock will find some support from the long-term average at approximately $25.07. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. A buy signal was issued from a pivot bottom point on Wednesday, May 23, 2018, and so far it has fallen 0%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell on the last day without any changes to the price. This does not cause any direct divergence but may be an early warning and a possible "turning point". The very low volume increases the risk and reduces the other technical signals issued. The stock had a Golden Star Signal on Thursday, May 10, 2018 in the short-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for Canopy Growth stock

On the downside, the stock finds support just below today's level from accumulated volume at $28.00 and $25.60. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Canopy Growth finds support just below today's level at $28.00. If this is broken, then the next support from accumulated volume will be at $25.60 and $24.92.

In general the stock tends to have very controlled movements and therefore the general risk is considered very low. However, be aware of low or falling volume and make sure to keep an eye on the stock During the last day, the stock moved $0 between high and low, or 0%. For the last week the stock has had daily average volatility of 0%

The Canopy Growth stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: $28.64 (-5.20%) (This stock has very low daily movements and this gives very low risk. The RSI14 is 90 and this increases the risk substantially. There is a buy signal from a pivot bottom found 5 days ago.)

Trading Expectations (TWMJF) For The Upcoming Trading Day Of Friday 1st

For the upcoming trading day on Friday, 1st we expect Canopy Growth to open at $30.21, and during the day (based on 14 day Average True Range), to move between $29.70 and $30.73, which gives a possible trading interval of +/-$1.03 (+/-3.47%) up or down from last closing price. If Canopy Growth takes out the full calculated possible swing range there will be an estimated 3.47% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $30.35 (0.45%) than the support at $28.00 (7.33%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Canopy Growth stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Canopy Growth stock to perform well in the short-term.

Current score: 1.920 Buy Candidate Unchanged

Predicted Fair Opening Price

Predicted fair opening price on June 1, 2018 - $30.21 ( 0%).

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