Canopy Growth Blazes Higher As Bullish Sentiment Returns To The Cannabis Sector: A Technical Analysis

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Blog post from Sep 11, 2023 at 6:36 PM got revised on Sep 11, 2023 at 7:40 PM.

Canopy Growth is experiencing a surge in its stock prices as the optimistic mood returns to the industry of cannabis. A thorough analysis of the technical side shows that the company's upward trend is set to continue.

Melanie Schaffer, an editor at Benzinga, wrote this blog post.

On Monday, the cannabis sector experienced a change in mood, causing Canopy Growth Corporation's (NASDAQ: CGC) stocks to surge by more than 50%. This shift was initiated by the Department of Health and Human Services, who proposed the reclassification of marijuana to a drug category of lesser risk.

The large company that deals with cannabis has seen a substantial increase of approximately 230% since August 30th, with trading volumes higher than usual. This suggests that many people are interested in the stock, and it could potentially indicate a new trend in the cannabis industry after a long period of little change.

The term "Volume" refers to the complete sum of shares exchanged in a security during a given time frame. It's an indicator utilized by technical traders to determine the overall enthusiasm and perspective towards a stock. Volume is also employed to validate a pattern or alteration in trend.

If a stock has higher trading volume during a bullish trend, its share price generally goes up. On the other hand, if there is an increase in bearish volume during a downtrend, the stock price usually drops. When trading volume is below average, this usually leads to consolidation, and the stock trades sideways as a result.

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Canopy Growth's chart showed a decline in July and August until it reached its lowest point at 38 cents. After that, the stock experienced a significant increase. On August 31, it surpassed the 50-day SMA, indicating the potential for a steady rise in the stock's value.

Check out this article: "Sundial, Canopy Growth and additional firms are competing for the American cannabis market," analyzed by an expert.

The content section in the blog is from Benzinga.com and it doesn't provide any advice on investment. The entirety of the rights for the content belongs to Benzinga.com and is reserved by them.

Check out the original piece at Benzinga.