I see a pop in CGC on the horizon. A clear bull pennant is forming, which is a great side for CGC longs. Worst case scenario, today's action causes a pull-back and a gap-fill for further consolidation prior to earnings. This quarter's earnings are incredibly important and the major players will all soon be revealing their first recreational sales data. Medical cannabis is still the major factor to revenue, but sentiment drives this chart beyond fundamentals as speculators are flocking to the sector.
The RSI has cooled off, giving opportunity for another pop. Short interest is approaching 60% meaning any positive price action above 49 could trigger a massive short covering. That is not unheard of in this stock, but momentum throughout the week has been cooling. I'm looking for a green day, a pull-back to fill the gap and a massive speculative pop preceding earnings.
The RSI has cooled off, giving opportunity for another pop. Short interest is approaching 60% meaning any positive price action above 49 could trigger a massive short covering. That is not unheard of in this stock, but momentum throughout the week has been cooling. I'm looking for a green day, a pull-back to fill the gap and a massive speculative pop preceding earnings.
Comment:
Perfect pennant formed. Unless market makers are able to fill this gap first, Friday or Monday will be an epic day on the next leg up. Get ready to load!