Canadian CANNAINVESTOR Magazine May 2017 - Page 114

Canopy as an Indicator:

In last month’s edition, I wrote a section on how Canopy’s stock (TSX:WEED; OTC:TWMJF) could be analyzed to infer whether the Canadian cannabis stocks as a whole were bullish or bearish. Fast forward to present day, almost three months since I wrote the article for that publication, and I must admit I no longer believe this to be the case. Whether it be the introduction of the Horizons ETF, the market’s perception of the Mettrum buyout and subsequent pesticide recall, other companies leaping ahead, an influx of new cannabis stocks, or a weak observation to begin with, whatever the case may be I must say they no longer appear to be acting as a “sector leader”. I have included the chart I posted from my last article as well as a present day Canopy chart as well.

Canopy Growth (TSX:WEED; OTC:TWMJF) last publication

Canopy’s chart as seen midway through February looked quite bullish. The stock had broken out of a two or three month downtrend and was consistently making higher highs and lower lows (a sign of an uptrend) until February hit and we saw a rush of heavy volume and the price broke out with it.

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