TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

(Click on image to enlarge)

I started to write about this company a couple of weeks ago, but since it was meandering, I didn’t. Yesterday it shot through resistance, though, and today it has continued to do so.

Only four analysts follow this stock; three call it a buy, while the other calls it a strong buy. Based in Ontario, Canopy Growth Corp. (CGC-T) (TWMJF) is a marijuana producer.

Management is focused on growth and expanding its production capacity. In August, the company completed a bought deal financing, issuing 9,453,000 shares at a price of $3.65 per share, raising $34.5-million.

In the chart above, two things are evident. On the PPO line, you will see a clear buy signal (circled) that’s only a few day’s old. The red-and-green auto-resistance line shows that in August the stock broke through a resistance point it established last November. The short blue line at the top of the chart shows that shares broke through a lesser line of resistance just yesterday. And the blue line that begins in late July shows the present trend, which of course is not indefinitely sustainable.

On the side of caution, of course, please note the circle on the far right of the relative strength line: For the fourth time in the last 12 months, the stock has gone into oversold territory.

Expect a bit of retracement over the next few days. And please take that as an admonishment not to consider this commentary as a buy or sell recommendation.