Hello Traders,
at yesterday`s session Canopy Growth (CGC) gaped to 19.30 at the opening bell and advanced for the rest of the session, making a new High on a closing basis since November 8! This gap is a „common“ gap as it often occurs at a sideways move, within a „Non-trend“ phase of the market activity.
The move found resistance at a falling trend line that connects the high of 21.68-21.65-21.49! On November 19 the stock has started a „three-white-soldier“ formation, which is a bullish sign. Of course, after three days of advancing price, the stock starts a short term correction that took six days, the trading range got narrowed and it explodes at yesterday`s session.
On the shorthand, it could be possible, that the stock will take a deep breath to recover that move, but this is not required.
So, none the less if the stock will pause the short term uptrend, as long as the stock is trading above the low of the gap candle (@ 19.21) the trend is up! A possible gap above the slight declining trendline could be a „breakaway-gap“ what is bullish too. But for now, this is a more speculative view! Let`s wait for the facts!
On the bearish view, a decline below the „gap-candle“ would eliminate the bullish view, while a decline below 19,21 will open the door to the 0.618 Fibonacci @ 17.61!
So, let's wait what will be next. For now, the stock is trading at negative territory (-1.37-1.58%) here at German exchange, with little volume.
`
I will update the chart in the coming hours and days.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
at yesterday`s session Canopy Growth (CGC) gaped to 19.30 at the opening bell and advanced for the rest of the session, making a new High on a closing basis since November 8! This gap is a „common“ gap as it often occurs at a sideways move, within a „Non-trend“ phase of the market activity.
The move found resistance at a falling trend line that connects the high of 21.68-21.65-21.49! On November 19 the stock has started a „three-white-soldier“ formation, which is a bullish sign. Of course, after three days of advancing price, the stock starts a short term correction that took six days, the trading range got narrowed and it explodes at yesterday`s session.
On the shorthand, it could be possible, that the stock will take a deep breath to recover that move, but this is not required.
So, none the less if the stock will pause the short term uptrend, as long as the stock is trading above the low of the gap candle (@ 19.21) the trend is up! A possible gap above the slight declining trendline could be a „breakaway-gap“ what is bullish too. But for now, this is a more speculative view! Let`s wait for the facts!
On the bearish view, a decline below the „gap-candle“ would eliminate the bullish view, while a decline below 19,21 will open the door to the 0.618 Fibonacci @ 17.61!
So, let's wait what will be next. For now, the stock is trading at negative territory (-1.37-1.58%) here at German exchange, with little volume.
`
I will update the chart in the coming hours and days.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!