Today’s Chart of the Day was shared on Twitter by Peter Brandt (@PeterLBrandt). It's a daily candlestick chart of the popular pot stock, Canopy Growth Corporation ($CGC). Marijuana was one of the worst-performing industry groups in 2019. However, it appears that these stocks may have found a bottom. From a sentiment perspective, most investors have left this group for dead, which creates a bullish opportunity for traders looking for short-term mean reversion. $CGC, for example, has bounced 65% from its low in less than ten weeks. It closed at a three month high today and is attempting to break out of a key resistance level around $23. If the stock can hold above this level, then the next major test for $CGC will be at the 200-day moving average, around $31. For more on the comeback in pot stocks, check out our recent report.
Chart of the Day - Monday, January 13th, 2020
January 13, 2020
