22% drop to C$0.035 in CLSH.CN (CLS Holdings USA, Inc., CNQ): watch for oversold bounce
CLSH.CN stock plunged 22.22% to C$0.035 in market hours on 26 Jan 2026, creating a classic oversold bounce setup. Volume hit 16,000 shares, three times the 4,724 average, which signals short-term capitulation. CLS Holdings USA, Inc. (CLSH.CN) trades on the CNQ in Canada and sits below both its 50-day (C$0.0387) and 200-day (C$0.0447) averages, a technical pattern traders watch for mean reversion.
Technical snapshot for CLSH.CN stock
Price action shows C$0.035 with a one-day decline of 22.22% and relative volume of 3.39, suggesting forced selling. The share price is under the 50-day average C$0.0387 and 200-day average C$0.044725, which supports an oversold bounce setup. Momentum indicators are distorted in the dataset, but the gap between current price and moving averages is the key short-term trigger.
Fundamentals and valuation for CLSH.CN stock
On reported metrics CLS Holdings USA shows EPS C$0.01 and PE 3.50, with market cap about C$8,110,935 and 231,740,999 shares outstanding. TTM data flags negative equity per share (book value per share -7.6148) and a low current ratio 0.1656, which raises solvency concerns. Price-to-sales at 0.46 and enterprise value to EBITDA 8.85 show value metrics but require caution given balance sheet weakness.
Recent catalysts and CLSH.CN stock news
There is limited fresh public news; latest coverage flagged listing and corporate structure details on OTC and CNQ markets. Market commentary has pushed the stock price below recent support, raising short-term volatility. For background see company disclosures on the official site and market summaries like MarketBeat and the company site CLS Holdings USA.
Meyka AI grade and model forecast for CLSH.CN stock
Meyka AI rates CLSH.CN with a score out of 100: 66.29 / 100 — Grade B, Suggestion: HOLD. This grade factors in S&P 500 benchmark comparison, sector and industry performance, financial growth, key metrics, forecasts, analyst consensus, and fundamental growth. Meyka AI’s forecast model projects a one-year price of C$0.04487, implying an upside of 28.20% versus the current C$0.035. Forecasts are model-based projections and not guarantees.
Risks and balance sheet red flags for CLSH.CN stock
Primary risks include a weak current ratio 0.1656, negative shareholders equity per share, and net debt to EBITDA around 3.88, which limit margin for error. Cannabis sector headwinds and regulatory uncertainty add downside risk. Traders should treat any bounce as tactical given solvency and liquidity constraints.
Oversold bounce trading strategy for CLSH.CN stock
For an oversold bounce play, consider a scaled entry near current price C$0.035 with tight risk controls: initial stop below the year low C$0.015 and target levels at short-term resistance C$0.045 (previous close) and the year high C$0.095 if momentum returns. Use small position sizes because of high volatility and low market cap.
Final Thoughts
CLSH.CN stock presents a short-term oversold bounce opportunity after a 22.22% intraday drop to C$0.035 on CNQ in Canada. The push below both the 50-day and 200-day averages and a relative volume spike support a mean-reversion trade, but balance sheet metrics—current ratio 0.1656, negative book value per share -7.6148—and sector risk demand caution. Meyka AI’s model projects C$0.04487 in one year, an implied upside of 28.20% from today’s level; however, that projection is model-based and not guaranteed. Traders looking for an oversold bounce should size positions conservatively, place a clear stop under the year low C$0.015, and monitor liquidity and regulatory headlines closely. For the live quote and updates visit Meyka’s CLSH.CN profile at https://meyka.ai/stocks/CLSH.CN and track official filings on the company site.
FAQs
Is CLSH.CN stock a buy after the recent drop?
CLSH.CN stock shows an oversold setup but carries balance sheet risk. Meyka’s grade is B (HOLD). Consider small, defensive positions with strict stops and confirm a volume-backed rebound before buying.
What price target does Meyka AI give for CLSH.CN stock?
Meyka AI’s forecast model projects C$0.04487 within a year for CLSH.CN stock, implying about 28.20% upside from C$0.035. Forecasts are model-based and not guarantees.
How should traders size positions in CLSH.CN stock on an oversold bounce?
Given CLSH.CN stock’s low market cap and weak liquidity, use small position sizing, a stop under the year low C$0.015, and staged profit-taking at C$0.045 and C$0.095 to manage risk.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
