Canopy Growth Corp. (NASDAQ:CGC) shares are trading higher Wednesday after the company announced its fiscal third-quarter financial results.
Canopy Growth reported quarterly revenue of CAD$155 million ($122.14 million), which was down from CAD$169.9 million year-over-year. The company reported a quarterly earnings loss of CAD$0.28 per share, which was up from a loss of CAD$2.43 per share year-over-year.
Canopy Growth was up 14.82% at $8.83 at time of publication.
See Also: Canopy Growth Shares Are Trading Higher Today, Analysts Tell Us Why
Canopy Growth Daily Chart Analysis
- Shares have spent months trading in what traders call a downward channel and are now nearing the resistance level in the channel. If the price can cross above the resistance level and hold, the stock may reverse and start a long-term bullish trend.
- The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue). This indicates the stock is in a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may hold as an area of resistance.
- The Relative Strength Index (RSI) has been climbing the past few weeks and now sits at 56 on the indicator. This shows that the stock is now seeing more buying pressure than selling pressure. If the RSI can hold above the middle line, it might hint that a reversal is coming in the future.
What’s Next For Canopy Growth?
Canopy Growth is seeing clues that a possible reversal may happen. For this to be confirmed, the stock will need to cross above the resistance level and begin to form higher lows above resistance as well maintain at least 50 on the RSI.
This is what bullish traders are looking for as well as the price to continue to climb and cross above the 200-day moving average. Bearish traders want to see the price get rejected at the resistance level and for the stock to continue to trade within the channel.
