Canopy Growth (CGC)

Canopy Growth (CGC) EW-Analysis

Max Oen

— 2 min read
Canopy Growth (CGC) EW-Analysis
2 week

Canopy Growth — Has the Historical Bottom Been Reached?

Since its IPO, Canopy Growth experienced a massive bull run, reaching an all-time high of $592.50. However, from that peak, the stock entered a prolonged and severe sell-off, falling below its initial IPO level and continuing to form new cyclical lows.

We now expect that the stock may have found its historical bottom and could begin forming new bullish impulses in the coming years. Our expectation suggests that this bottom is fully established around $0.77.

This would represent a total decline of approximately 99.87% from the all-time high to the bottom.

1 day

However, on April 9th, 2025, Canopy Growth formed a local bottom and began its first impulsive fractal within dark blue Wave 1. From that point, the stock entered a short-term corrective phase, largely moving in correlation with the broader market.

Currently, we expect the stock to be in the final stage of this corrective phase and approaching the completion of dark blue Wave 2. We have identified a Fibonacci retracement zone in which we anticipate this correction to end and Wave 2 to be terminated.

This zone ranges from:

  • 78.6% at $0.96
  • 88.7% at $0.87

Within this zone, we expect the stock to regain bullish momentum and initiate a strong upward move. A break above the local highs at $1.33 and $2.38 would confirm the cyclical bottom and signal the beginning of a long-term bullish trend.

From our perspective, this Fibonacci zone represents a prime buying or accumulation opportunity.

However, it is important to emphasize that this stock remains a high-risk asset. As discussed, it has shown predominantly negative performance over the past years. On one hand, this increases the risk, as further cyclical lows cannot be ruled out. On the other hand, it creates a potentially attractive risk-to-reward profile for more speculative investors.

If any structural changes occur or if the stock reaches our defined Fibonacci retracement zone, we will provide an update immediately.

Kind regards,
Monalytics

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