Until the Big Cannabis cultivators start showing Wall Street solid operating numbers, they’ll remain the territory of short-sellers and swing traders. At the moment, the swing favors the bulls.
Canopy Growth Corp. (NYSE:CGC) is up a healthy 5.8% this week. More importantly, it has tested and proved that it can hold 50-day support above $16.70.
That’s now the floor that cannabis bears need to respect. They tried to push CGC below that line this week and failed.
If CGC can successfully recover the 200-day trend as well, the giant in the industry may be ready to launch a more sustained rally. That’s only another 5% leap from here.
Likewise, while Tilray Corp. (NASDAQ:TLRY) surged a healthy 15% this week, I see room for at least another 6% in upside before the bulls hit serious resistance.
There’s an opportunity to make a little easy money here. And if TLRY clears $8.48, the stock has a lot of open skies above. We just have to get there first.