6/29 - what could have been the beginning of the 3rd wave starting in mid April failed to materialize as price action headed into a descending triangle. Therefore I had to re-position the count of Wave 1 to April 30 - With the re-positioned count, we are currently in Wave 2 nearing the end of another descending triangle. If this holds true, we expect price to move up in a thrust to Wave 3. - Invalidation Point: $25.26 if Wave 2 retraces all of Wave 1, this count is no longer valid and we are likely in Wave (c) of a corrective cycle. - Confirmation Point: $80.23+ price breaks above the length of Wave 1 such that Wave 3 is not the shortest wave.
Comment
⋅
7/4 - News of Bruce Linton's termination announced on 7/3. Market reacts with a bullish engulfing candle. - $38.24 - $39 price range represents multiple wave fib lines for W(III) W(b) and W1. Theoretically this is a level for support bounce into a reversal. We have seen this bounce multiple times on May 31 and Jun 24 and now Jul 3. - I suspect that SP will continue a sideways trend within the bounds of the triangle until September. - If we are in Wave 2, price action typically holds support at 0.5 ($39) or 0.382 ($35.76) Fib retracement of Wave 1 - grey fib lines. Price should break $80.23 to confirm the beginning of a Wave 3 if this is the case. - Invalidation Point: $25.26 if Wave 2 retraces all of Wave 1, this count is no longer valid and we are likely in Wave (c) of a corrective cycle. - Confirmation Point: $80.23+ price breaks above the length of Wave 1 such that Wave 3 is not the shortest wave.
Comment
⋅
7/11 - SP broke out of triangle and below support of major Fib lines 0.382 W(w), 0.618W(III). Therefore it looks less likely that CGC is in a W(IV) triangle. If it were, we would likely be breaking out of the triangle into a W(V) impulse. CGC is now more likely in a W(IV) double three that is going to end in a 3-3-5 flat correction. Target near $25 or slightly below.
Possibility #1: CGC is in W(IV) double 3 pattern. Possibility #2: CGC is in a W(IV) triple 3 pattern.
Amazing setup, keep it up and leave us a like aswell mate :)
follow_the_money
⋅
I dont see anything near term that would bring SP up to 80, would have to break through multiple resistance levels and make ATH's. Furthermore, volume has declined exponentially and has convergence with declining SP... not good imo. I would like to see this pullback so I can add to long term position. I have a detailed Long-term analysis of CGC on my TV page also at this website:
msmoneymoves.com/2019/06/25/is-canopy-growing/