Canopy Growth Corp (NASDAQ: CGC) was once a $50 dollar stock believe it or not at the turn of 2020 into 2021 when the US thought that congress was going to legalize pot. That didn’t happen and it’s been a steady decline ever since. Infact, price hasn’t even touched the 21 EMA on the weekly for 15 months.
As per a newsletter from Raging Bull, yesterday CGC finally made a higher higher on the weekly chart and in the daily chart seems to be in a low volume area with next resistance at $5. The unusual options activity on CGC were the contracts for September monthlies $5 calls. As per options scanner more than 30,00+ call contracts were added to that yesterday alone to just those September 16 $5 calls.
The first thing that CGC needs to do is to hold $4 but if it does that and any kind of buzz comes from DC about legalizing pot, this is one of the primary names that will benefit from that. One last important note, we saw unusual options activity in several other Pot names yesterday as well which could be a signal. As always conduct your own due diligence and follow traders vigilance.
