Canopy Growth Stock Hits Nearly 2-Month Peak in 2021 Following U.S. Website Launch – Price Surges 14.86%

Canopy Growth Corporation (CGC) experienced a significant 14.86% surge in stock price on Tuesday, 2021, after unveiling its new U.S. online platform for cannabis product sales. This e-commerce site notably features Martha Stewart’s exclusive CBD line, alongside other hemp-derived brands, marking a major step in the company’s U.S. market expansion.

Sol Clahane, Vice President and General Manager for Canopy Growth’s U.S. Region, emphasized, “We are excited to provide customers with a seamless, one-stop shop to explore and purchase Canopy Growth products in the United States.”

The cannabis industry received an additional boost following commentary from Toronto-based CIBC, which indicated that federal legalization in the U.S. appears increasingly plausible if Joe Biden secures the presidency. Despite 33 states legalizing cannabis in some form, regulatory challenges have long hindered Canadian companies from fully penetrating the U.S. market.

Technically, Canopy Growth’s shares broke out from a two-and-a-half-month symmetrical triangle pattern and closed above the critical 200-day simple moving average (SMA), signaling bullish momentum. The approaching convergence of the 50-day SMA with the 200-day SMA suggests a potential golden cross, a strong buy indicator. Traders should consider setting profit targets near the early January high of $26, with stop-loss orders below the 200-day SMA or the July 24 low at $16.20, depending on individual risk preferences.

Investors tracking the cannabis sector should also consider two leading U.S.-listed Canadian marijuana stocks positioned for growth amid industry shifts:

Cronos Group Inc. (CRON) – Market Cap $2.45 Billion

Cronos Group cultivates and markets both medicinal and recreational cannabis through its brands Peace Naturals, Cove, and Spinach. In September 2019, it expanded its U.S. footprint by acquiring Redwood Holding Group LLC, a CBD-infused skincare company, for $300 million in stock and cash. Analysts anticipate a Q2 earnings per share of -$0.06, with the report expected before the market opens on August 6, 2021. Although Cronos shares have declined 7.69% year-to-date, they have rebounded nearly 13% over the past three months as of late July.

Since November 2020, Cronos stock mostly traded sideways, punctuated by brief selloffs in March and May. A recent breakout above the symmetrical triangle’s upper trendline suggests potential for further gains. Investors should aim to take profits near $10.60, a key resistance level, while protecting capital with stop-loss orders below the recent swing low at $6.20.

Tilray, Inc. (TLRY) – Strategic CBD-Infused Beverage Partnership

Tilray cultivates and sells medical and recreational cannabis through brands like Canaca, Dubon, and Manitoba Harvest. In 2018, it partnered with beverage giant Anheuser-Busch InBev SA/NV (BUD) with a $100 million deal to develop non-alcoholic cannabis-infused drinks for the Canadian market. Analysts set a 12-month price target of $9.54, reflecting a 17.5% upside from the July 2021 closing price of $8.12. Despite a more than 50% decline year-to-date, recent price action shows promise.

Since its peak near $300 in late 2018, Tilray has been in a pronounced downtrend. However, a breakout above a two-month trendline on strong volume in late July 2021 could spark renewed buying interest. Traders entering long positions at current levels should consider scaling out near $11.60 and $15, key resistance points, while setting stop-losses below the critical $7 support level.

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