Cannabis stocks Canopy Growth Corporation ( CGC ) , Aurora Cannabis, Inc. ( ACB ) and Tilray Brands, Inc. ( TLRY ) shares are trading lower Wednesday after soaring following reports that the DEA will move to reschedule marijuana. 

The Details:

Cannabis stocks saw a short-lived rally Tuesday following reports that the DEA will move to reschedule marijuana from a Schedule I to a Schedule III substance. The DEA’s proposal would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than Schedule I substances. 

The proposal must be reviewed by the White House Office of Management and Budget and is subject to a public comment period before an official reclassification can be made. 

Canopy Growth ( CGC ) shares surged more than 75% Tuesday, though the stock is giving back some gains Wednesday. Canopy's stock is down nearly 30%. 

Aurora Cannabis ( ACB ) gained more than 25% following the report, though the stock is trading down by more than 20% Wednesday. 

Similarly, Tilray shares rose nearly 40% Tuesday, yet shares are trading 20% lower in Wednesday's session. 

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CGC Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Canopy Growth ( CGC ), an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Canopy Growth ( CGC ), the 200-day moving average sits at $5.89, according to Benzinga Pro, which is below the current price of $10.54. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CGC, ACB, TLRY Price Action: According to Benzinga Pro, Canopy Growth ( CGC ) shares are down 29.4% at $10.50, Aurora Cannabis ( ACB ) shares are down 21.4% at $7.25 and Tilray Brands ( TLRY ) shares are down 20% at $1.97 at the time of publication Wednesday.

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