Canopy Growth’s 1st Line of U.S. Products Are Now Available
Canopy’s Stock Chart is Growing More Bullish By the Day, Here’s an Updated Review and Near Term Price Target
Canopy Growth (TSX: WEED) (NYSE: CGC) announced today the official launch of its new line of products exclusively available to its American customers. Canopy’s new U.S. brand dubbed ‘First & Free’ is formulated using a hemp-derived product and is now available for purchase on the First & Free website in a variety of product formats such as softgels, oil drops and creams.
According to the company, First & Free products were created using state-of-the-art technology and put through rigorous testing to meet Canopy’s stringent quality control threshold. First & Free products are crafted using pure hemp-derived extracts and isolates allowing the company to produce a standardized product that is then packaged in consumer-friendly easy-to-use formats.
“First & Free marks a new way for US consumers to purchase quality products from a trusted source. Through state-of-the-art extraction methods, strict quality control measures, and scientific research, we are delivering a best-in-class product to the market,” stated Canopy Growth President Rade Kovacevic.
Thanks to the passage of the 2018 Farm Bill which effectively legalized hemp in America, cannabis companies can now legally sell hemp products throughout the United States without running the risk of losing their TSX, TSXV, NYSE or NASDAQ listings.
The company concluded this morning’s press release by touching on the current legalities regarding hemp products in the U.S. market. As we’ve seen with the recent FDA warning letters to cannabis companies not following their somewhat cloudy rules, Canopy is looking to reassure its investors and customers that the company’s products are fully in line with current regulations in the United States. Canopy had the following to say:
“Canopy Growth is committed to selling only high-quality, tested and reliable products, and ensuring it makes no claims unless clinically validated. This means selling First & Free products only in states where permissible under state law in order to ensure compliance with state consumer protection mandates and following the most stringent state laws regarding the sale. The Company is also abiding by existing FDA regulations for manufacturing, labeling and marketing dietary supplements.”
WEED Stock Price Action & Near Term Price Target
Shares of Canopy Growth’s TSX listed stock closed today’s trading session at $27.85, up 4.42% on the day. After breaking out from its bull pennant chart formation on Monday, Canopy’s stock has been trading as expected. On Tuesday, the stock pulled back as traders took profits while others attempted to fade the breakout. The good news here is that WEED stock held up very well and came nowhere near the top side of the pennant’s upper trendline which previously served as resistance and now serves as support. Following a breakout such as this, it’s common for the stock to pull back and test the breakout point from the upside. If the stock holds the new support line, the breakout is a success and more traders will enter the stock further propelling it upward. The fact that Canopy was able to avoid a retest of the breakout point should send a clear signal to cannabis investors that the market is waking up. Since Canopy is widely regarded as the industry bellwether, WEED could help primed the market for a real Santa Claus Rally to cap off an otherwise lacklustre 2019.
When dealing with bullish pennants there’s a pretty reliable and simple formula for calculating the breakout’s near term price target. We’ve covered this in previous articles and will outline it again briefly here. Like a pennant or flag in real life, there’s a pole attached to it which extends downward.
- Step 1: Calculate the length of the pole. In this case, it’s $10.
- Step 2: Determine the breakout point. The point where the stock broke out above the upper trendline. That point here is $25.
- Step 3: Add the length of the pole ($10) to the breakout point ($25).
- Near Term Price Target = $35 per share
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