CGC Stock Forecast for July
With June behind us, the marijuana stock market is about as unpredictable as ever as we head into July. The industry received a huge shot in the arm from the announcement of the Canadian marijuana legalization date, but stocks like Canopy Growth Corp (NYSE:CGC) weren’t able to hold on to much of those gains as a mini-correction followed the spike in stock value. So what does the CGC stock forecast for July look like?
I expect to see mild gains throughout most of the month, with a few spikes up and down for good measure should major news land.
At the moment, there isn’t really much on the horizon that should drive the marijuana stock to either extreme, but of course, it is the nature of news to be unexpected.
With the Canadian marijuana legalization date largely settled, only a major setback like a legal challenge could hope to delay the move. And that is very unlikely.
A major crackdown in the U.S. could also set the industry back, but with President Donald Trump and his administration seeming to back off targeting marijuana, that too appears to be a longshot.
In that case, I expect the CGC marijuana stock forecast for July to be one small step forward as investors anticipate marijuana legalization.
I also expect several jumps and dives as the industry is known to provide. These will likely come out of the blue, largely due to a bull sentiment in the market, which drives investors to buy, followed by mini-corrections the next week or even following day.
So if you’re looking to get into CGC stock, there are two main strategies.
The first is to buy early and hold. This is the safest, least demanding strategy and while you may not get the best value out of your purchase, in the long run, I see CGC stock as one of the promising companies in the industry.
On the other hand, more active investors may want to wait for one of those downturns to hit and push the stock down in value. Getting in at the nadir of a mini-correction could see an investor earn an additional 10% or so right off the top if past corrections are anything to go by.
That’s a nice addition, and for day traders it’s an ideal play to make, but I believe that the true value in CGC stock lies in the years ahead as the industry giant expands into new markets and takes advantage of Canadian marijuana legalization.
July is going to be a fairly boring month, all things considered, unless something out of the blue strikes.
There doesn’t seem to be much on the horizon that could sway markets too far in any direction other than investor sentiment.
I predict slight gains to the tune of five or so percent when all is said and done for CGC stock in July. But take that prediction with a grain of salt; the industry is in a very volatile state right now.