AzizKhanZamani

CGC Bear Trend|Critical Weekly Support|MJ Sector

NYSE:CGC   CANOPY GROWTH CORPORATION
Evening traders,

Today’s TA will focus on CGC which is in a brutal downtrend and is currently testing a critical support that if broken will send it to next local support situated at the $5 level.

Points to consider,
- Strong bear trend
- Critical support being tested
- Break of .236 Fibonacci ( bullish case)
- RSI broke key trend line
- Stochastics projected downwards
- Noticeable bear volume nodes

CGC is in a strong bear trend with consecutive lower highs, this is evident across all stocks in the MJ industry. The critical support is currently being tested, due to the nature of the trend; it does have the probability of breaking.

For a bullish case, CGC needs to break above the .236 Fibonacci level, this will put in a higher high and negate the overall bearish structure.

The RSI broke its key trend line , this was coincided with the bear flag – the 200 MA also broke at this level.

Stochastics is projected downwards, still has stored momentum to the downside and has not yet flattened out.

CGC has noticeable bear volume on weekly nodes, a volume climax will send it breaking though support and put in a temporary bottom.

Overall, in my opinion, CGC must hold this critical support; a break will send it to penny stocks territory where it can stay down there for a while.

This is very similar to all stocks across the MJ sector.

What are your thoughts?

Please leave a like and comment,

And remember,

“Hope is bogus emotion that only costs you money.” – Jim Cramer

Comments

5 dollars, then to under dollar to join ACB, HEXO, and soon to be TLRY and CRON :)
+1 Reply
@snedapunk, What a Week this has been !
Reply
Yes what level is important to hold? thanks
+1 Reply
@psbassin, the current level being tested is very important to hold, next support is at $5
Reply
psbassin AzizKhanZamani
@AzizKhanZamani, you mean $10.92 or so? thanks for your help!
Reply
psbassin psbassin
@psbassin, Or $10.50? I thought $8.96 was the next level down?
Reply
What price point is circuital to hold?
+1 Reply
@LeviBehen, the current level on this time frame, a break of this will like lead to investor capitulation, next critical support will then be the $5 region
Reply
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