Canopy Growth Corporation (NYSE:CGC) is down by over 65% from the all-time high of $59.25. The downturn has been so severe that its now trading like a volatile cryptocurrency. Mati Greenspan updating his followers on the latest CGC plunge. | Source: TwitterIn addition, full-time traders have a gloomy outlook on the stock. Jim Cramer’s The Street released a report that outlines why they have a bearish view on CGC. The investment analysis website downgraded the stock to “Sell” after seeing signals that the plunge is not yet over. In addition, Johnny Lambo, co-founder of Capital 10X, spoke to CCN and shared his bearish view on the pot stock. He said, I have a bearish take on Canopy. It is overvalued. The active trader also noted that the company’s forward sales figure is not attractive. It appears that Canopy Growth is a stock that you should stay away from. However, we spoke to the world’s top Wyckoff analyst and we heard interesting insights that may provide some reasons to put the pot stock on your watch list. Canopy Growth Is a Solid Bottom-Picking Candidate In technical analysis, accumulation can be equated to an asset’s bottom. It is usually the price range where the smart money scales in after a vicious bear market. At this point, the security has lost so much value that investors in the know think it is cheap enough to start buying shares. Todd Butterfield, the owner of the Wyckoff Stock Market Institute, thinks that CGC is transitioning from downtrend into accumulation. In an interview with CCN, the Wyckoff expert shared his technical analysis on the pot stock. He said, Canopy Growth has been in a solid downtrend for almost 6 months. The figure count objective from the $52 level, which was an Upthrust After Distribution pointed to the $24 level. We reached that level so we are on the lookout for stopping action or slowing of the selloff. You can also see the shortening of the downward thrusts as we worked lower as shown by the light blue ABC, which also has us looking for a low. CGC bears are showing signs of exhaustion. | Source: Todd ButterfieldThe trader added, We have a proprietary Technometer that gives us oversold/overbought readings and those are marked on the chart as well with the blue B/S markings. We are oversold currently and have been on the complete decline. With these signals, the Wyckoff analyst believes that the stock may be at the stage where it is a solid buy for long-term investors. Mr. Butterfield said, We do think this stock is preparing for early stages of accumulation, so we want to start accumulating a position as well. So, with that in mind we will take a 1/4th long position on any further weakness from the $20.42 Thursday close. We will then monitor for appropriate add levels in the weeks ahead. Some Smart Money Investors are Buying Todd Butterfield is not the only one who sees the potential of CGC. Mati Greenspan, senior market analyst at eToro, is a buyer at current levels. When asked if he has a bullish take on Canopy Growth, the analyst said, Yes, I’m buying. He also shared his eToro portfolio with CCN to prove that he’s bullish on the stock. Mati Greenspan’s eToro portfolio. | Source: eToroEven former Goldman Sachs analyst Will Meade has joined the pot stocks conversation. He tweeted that those buying CGC shares now will make a fortune. Will Meade bullish on Canopy Growth. | Source: TwitterThere’s usually a lot of fear when an asset is close to bottoming out. But like Will Meade said, Canopy Growth is a market leader and it is likely facing a temporary obstacle. At this point, it seems that the pot stock is closer to the bottom than the top. Thus, it deserves a spot on your watch list. Disclaimer: The above should not be considered trading advice from CCN. This article was edited by Sam Bourgi. Last modified (UTC): October 11, 2019 14:28
Battered Canopy Growth Looking to End Its Brutal Downtrend Says Top Analyst
