Looking at the short-term technical picture of the Canopy Growth Corporation stock (NASDAQ: CGC) on our 15-minute chart, we notice that from the end of April, the share price continues to drift lower, while trading below a short-term tentative downside resistance line taken from the high of April 28th. That said, after finding some good support near the 24.78 hurdle, the stock started correcting higher and is now running above a short-term tentative upside line drawn from yesterday’s low. In the next few days, the stock could drift a bit higher, but we will take a cautious approach, if CGC reaches the above-discussed downside line.
A further push north, above yesterday’s high, at 25.66, could attract more buyers into the game. CGC may then travel to the 25.86 obstacle, a break of which may clear the path towards the 26.14 level, marked by an intraday swing low of May 3rd. Slightly above it runs the aforementioned downside line, which could provide a better hold-up.
Our oscillators are currently pointing higher. In addition to that, the RSI is still above 50 and the MACD had just jumped above zero and continues to run above its trigger line. At the time of writing, the two indicators seem to support the near-term upside scenario, as both of them show increasing upside price momentum.
Alternatively, if the share price breaks the previously-mentioned upside line and then falls below the 25.17 zone, marked by yesterday’s intraday swing high, CGC may then drift towards the 24.91 obstacle, a break of which might set the stage for a move to yesterday’s low, at 24.78.
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