Canopy Growth Corp. (CGC) stock price has shown a gain of nearly 70% a week from a record low showing some signs of recovery in the upcoming sessions. The stock price has reacted to the news reported by Bloomberg as the US is moving towards legalizing marijuana, which could create a huge opportunity for the company.
Canadian cannabis stocks have been in a slump for years, but there is hope for a revival. One of the former leaders, Canopy Growth (TSX: WEED), has been one of the worst performers this year. It started with a brief rally but then plunged 70% and is now below $1.
Canopy Growth stock (CGC) stock has already jumped 70% in a week and could go higher if it continues with the momentum. If it reaches its 2023 high, investors could triple their money if they buy now. Canopy Growth is a fallen giant that could rise again.
The analysts are offering a 1-year price forecast for Canopy Growth Corp. stock. They have given a maximum estimate of $2.20 with a potential of more than 136% to the upside and a drawdown of 64% to fall back to $0.32. Canopy Growth Corp. (NASDAQ: CGC) engages in the production and sale of cannabis and cannabinoid-based products for both adult use and medical purposes.
CGC stock option-chain analysis states that the current implied volatility in the market is 241.24% with an increment of 29.08% in the last trading session. The nearest resistance of $1 has 290 open contracts on the PUT side and 14,920 open contracts on the CALL side indicating the dominance of sellers at the current level. The PUT/CALL ratio is 0.22 indicating that CALL writers dominate the market as per the data.
CGC Stock Price Shows Bulls Regaining Control
The CGC stock price currently trades at $0.93 with a gain of over 70% in the past 1 week.
The price may surge above the $1 level if it continues with the same momentum in the next week. The daily chart shows that the price broke out of the descending triangle pattern. The price needs to show a gain of 1000% to reach a mark of $10. The CGC stock needs to show continuous and stable growth over a period of time to reach the $10 mark.
Moreover, the option chain data shows the bears are still active at the upper levels indicating that the buyers need to struggle to gain full control and surpass the upper levels.
EMAs Show Golden Crossover On the Daily Chart
The daily CGC stock price chart shows that the price made a breakout of the 50 EMA showing bullishness in the short term. The overall Technical Opinion rating including RSI and MACD signals a 24% buy with an average short-term outlook on maintaining the current direction.
Canopy Growth, (CGC stock), a Canadian cannabis company, rose 70% in a week after the US moved towards legalizing marijuana. The stock trades below $1 but could triple if it reaches its 2023 high. Analysts have a positive outlook with a maximum potential of 136%. The stock has broken out of a bearish pattern but needs to gain 1000% to reach $10. The option chain data shows resistance from bears at higher levels. Canopy Growth is a former leader that could recover.
- Support levels: $0.35 and $0.65.
- Resistance levels: $1.05 and $1.36.
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