Canopy Growth Corporation (CGC) stock surged 14.86% Tuesday after the Canadian marijuana producer launched its highly anticipated website to sell cannabis products in the United States. The company's e-commerce platform will also feature new hemp-derived brands, including lifestyle entrepreneur Martha Stewart's cannabidiol (CBD) line.

"We're pleased to offer our customers a convenient, one-stop destination for exploring and purchasing Canopy Growth's products in the U.S.," the firm's Vice President and General Manager of the U.S. Region Sol Clahane told Business Insider.

More broadly, marijuana stocks received a boost this week after Toronto bank CIBC said that U.S. federal legalization looks more likely if Joe Biden is elected president. Regulatory hurdles have provided a constant overhang for Canadian pot firms trying to expand their products into the U.S. market, despite 33 states having already legalized medical and/or recreational cannabis consumption and sale in some form.

From a technical standpoint, Canopy Growth shares broke out yesterday from a two-and-a-half-month symmetrical triangle and closed comfortably above the 200-day simple moving average (SMA). Furthermore, the 50-day SMA continues to converge toward the 200-day SMA, indicating an upcoming golden cross buy signal. Breakout traders should set a take-profit order around the early January swing high at $26. Consider placing a stop beneath the 200-day SMA or under the July 24 low at $16.20, depending on personal risk tolerance.

Chart depicting the share price of Canopy Growth Corporation (CGC)

Traders who follow the group should also take a look at these two leading U.S.-listed Canadian marijuana stocks that sit well positioned for further growth amid an industry turnaround.

Cronos Group Inc. (CRON)

With a market capitalization of $2.45 billion, Cronos Group Inc. (CRON) cultivates and markets medicinal and recreational cannabis through its Peace Naturals, Cove, and Spinach brands. To increase its push into the U.S. market, the company acquired CBD-infused skincare products firm Redwood Holding Group LLC in September 2019 for $300 million in stock and cash. Analysts expect the company to disclose second quarter earnings per share of -$0.06 when it reports before the opening bell on Aug. 6. Although Cronos stock is trading 7.69% lower year to date, it has gained nearly 13% over the past three months as of July 29, 2020.

Since mid-November, the specialty drug manufacturer's stock has traded mostly sideways, apart from brief selloffs in March and May. In a sign of improving sentiment, price broke above the top trendline of a symmetrical triangle in Tuesday's session, which may drive further upside in the weeks ahead. Those who buy here should aim to book profits near $10.60, where the shares encounter resistance from a horizontal trendline. Protect capital by placing a stop-loss order under the most recent swing low at $6.20.

Chart depicting the share price of Cronos Group Inc. (CRON)

Tilray, Inc. (TLRY)

Tilray, Inc. (TLRY) cultivates and sells medical and recreational cannabis through a portfolio of brands including Canaca, Dubon, and Manitoba Harvest. The company took a bet on CBD-infused drinks in 2018, forming a $100 million partnership with beverage giant Anheuser-Busch InBev SA/NV (BUD) to research non-alcoholic cannabis drinks for the Canadian market. Analysts have a 12-month price target on the stock at $9.54, representing a 17.5% premium to Tuesday's $8.12 close. As of July 29, 2020, Tilray shares have slumped over 50% on the year.

Since reaching a lofty high of $300 in the fall of 2018, the stock has remained entrenched in a steep downtrend. More recently, price broke above a two-month trendline on above-average volume Tuesday in a move that could be a catalyst for more short-term buying interest. Active traders who take a long position at these levels should consider scaling out at $11.60 and $15 – both key overhead resistance levels. Cut losses if the shares fail to hold above major support at $7.

Chart depicting the share price of Tilray, Inc. (TLRY)

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