Earnings Play: Canopy Growth

How to play Canopy Growth's earnings

Uptrend 2

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

More from Earnings

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.