Canopy Growth (Friday’s close $37.50) had a sharp decline from $70.98 to $18.23 in 2019 (A-B), then remained within a large horizontal trading range mostly between $18.50 and $34.00 (dashed lines). The recent rise above the 40wMA, as well as the recent rise to $35, is positive (C), however, only a sustained rise above $35-36 would confirm the start of a new up-trend.
Behaviour indicators including the 40wMA and the rising trend-line (solid line) confirm the bullish potential. There is good support near $29-30; only a sustained decline below $24-25 would cancel the current upside potential.
A rise above $35-36 would signal Point & Figure targets of $39 and $42. Potentially higher targets are visible.
Chart source: www.decisionplus.com
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