<center>![](https://images.hive.blog/DQmUM4yr1Dh8CbX7SJayMjhTETjWLc2gzDaPzhh1L5UEsaf/image.png)</center>

The Four Horsemen of Cannabis, Canopy Growth, Tilray, Cronos, and Aurora Cannabis are down between 50% and 75% in the last 12 months. One of the biggest reasons was a supply shortage, as a lot of Canadian growers waited too long to expand their capacity. There was also the issue of cultivation and processing application backlogs, as well as high tax rates in the U.S. and a significant delay in the launch of the derivatives market. Then there was the regulatory and accounting issues that have left investors with cold feet. 

But based on what I have seen in the space over the last couple of weeks, the Cannabis space might be bottoming and for good reason.  According to a report by Grand View Research, Inc., the global legal marijuana market is expected to reach USD 146.4 billion by end of 2025. 

Canopy Growth Corporation, the largest publicly traded marijuana company, grows, and sales medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps under brands such as Tweed, Black Label, Leafs By Snoop, etc.  And the company has some backing by one of the biggest beverage companies in the world. 

Constellation Brands produces beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. Constellation Brands, Inc. owns such brands as Corona, Svedka vodka, Arbor Mist, Wild Horse, among many other brands.

![](https://images.hive.blog/DQmTJZi3oWA948P72bymGiqcy2f3VnGCor6EZGxSrR4DLJ8/image.png)

Constellation Brands acquired a 10% stake in Canopy Growth in October 2017, as it sought to gain a foothold in the recreational marijuana market. Then in August of 2018, Constellation Brands raised its stake in Canopy Growth to 38%.
The investment provides Canopy Growth with the necessary funding needed to build scale in the more than 30 countries currently pursuing federally permissible medical cannabis programs.

Short sellers made a killing in 2019 to the tune of $1 billion and in 2020, they were off to a great start, according to S3 Partners analyst Ihor Dusaniwsky, short sellers are down $641 million in the month of May, and their year-to-date profits are down to just $180.1 million.

<blockquote>

Shares of cannabis company Canopy Growth  (CGC) - Get Report rose Friday after analysts at Bank of America reinstated coverage on the company with a buy rating and C$30 ($21.44) price target. 

BofA says that while the development of the Canadian cannabis market has been slower than many industry watchers had anticipated, Canopy Growth is still well positioned in what will eventually be a high growth market. 

"Overall we are favorable to Canopy's long-term prospects, as a leading balance sheet [has] allowed Canopy to scale both in Canada and abroad (specifically the US), at a faster clip than peers," said analyst Bryan Spillane.

</blockquote>

<center><a href="https://www.thestreet.com/investing/canopy-growth-boosted-by-bullish-bofa-note?puc=yahoo&cm_ven=YAHOO&yptr=yahoo">Source</a></center>

Based on the monthly chart, we see negative divergence, a sign of a reversal.  Negative divergence in a downtrend occurs when the price action makes lower lows, but an oscillating indictor such as the RSI or MACD is making higher highs.

 ![](https://images.hive.blog/DQmR74dHgKYZPQTUTaSSDs1rfa4sWY1XYavD3UVbXTZfiHe/image.png)

So based on the weekly chart, the chart suggests price can move higher to the major resistance/support band at $24 as a first target.

![](https://images.hive.blog/DQmfTj82i9eW629PuSsT5bDHvujr7wXEoyio4FAcG5RnFRj/image.png)

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

<center>https://steemitimages.com/DQmRhDtjokAZnGKi4QwheqksKTFo6m4fsjMYsNNrsitC1xk/upvote%20banner3.gif</center>

Posted Using [LeoFinance](https://leofinance.io/@rollandthomas/bank-of-america-likes-canopy-growth)