The honeymoon period is well and truly over for the kingpins off the cannabis sector, they main benefactors in 2019 are consumers of the products rather than investors. It seems that Investors will have a long wait to see any new highs in Canopy Growth as the reality of valuations in the sector has come to light. In a recent filling to the Securities and Exchange Commission CGC’s main stakeholder) reported that it will have a non GAAP loss of $38.5 million for the quarter ending Aug 31st.Until widespread legalisation comes to pass in the USA and indeed the world those losses look set to continue into the future. Due the boom in the industry, competition is fierce in the production, extraction, distribution and retail side of the industry, which has led to price contraction and in turn profit margin declines.Canopy has plenty of company in this recent demise,) has suffered an even greater decline and also has had its fair share of controversy, namely the offloading of shares by its board. The charismatic founder ofrecently found himself on the scrapheap aftermade the decision to end his role aswithin the company, due to concerns of reckless spending and questionable management decisions.Canopy stock is currently trading at a 50% discount from its peak in late 2018, but this may present an opportunity to catch a nice reversal trade, so let’s take a look at the charts for some clues to where the stock price is heading in the near term, while also remembering that a 50% discount still leaves the stock at quite a high valuation.So as to surmise, for a reversal trade there is considerable bullish confluence between indicators and price action, despite this it is advisable to wait for more confirmation from a break above the 24MA and break above the momentum downtrend. For extra caution await a spike in volume a new higher high on the RSI Firstly, what is obvious from the chart is that symmetry exists between the 2018 and 2019 declines, with 57 % as the mean decline. Such symmetry should be considered as a good are to consider a reversal, but in tandem with further confirmation. The RSI indicator has also made a strong reversal of the bottom while volume has also become predominantly bullish What helps a bias on the bullish side is that the reversal level of $24 has been confirmed as strong support in the past, having flipped from resistance.Company ProfileCanopy Growth Corp. engages in the production and sale of medical cannabis. The company offers products including oils and concentrates, soft gel capsules and hemp. It focuses on the treatment of chronic pain, seizures, muscle spasms, nausea, and loss of appetite. The company was founded by Bruce Linton on August 5, 2009 and is headquartered in Smith Falls, Canada.