Chart of the Day - Thursday, October 24th, 2019

Today’s Chart of the Day was shared on Twitter by Michael Kahn (@mnkahn). It's a daily bar chart of the popular pot stock, Canopy Growth Corp. ($CGC). As you can see, the stock has been in a well-defined downtrend since late April. It's down over 60% from its 2018 peak. However, Michael suggests that it could soon see some mean reversion. He highlights the bullish momentum divergence that has formed over the past two months but emphasizes that it still needs to break through its down trendline. The stock is currently trading at $21.66, and its 200-day moving average is around $38, which is about 75% higher from here. It's highly unlikely that the stock will see new all-time highs anytime soon, but it'll be interesting to keep an eye on this chart to see if it can break out of its downtrend and revisit its 200-day moving average.