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 ( case)
- broke key
- Stochastics projected downwards
- Noticeable bear 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 case, CGC needs to break above the .236 Fibonacci level, this will put in a higher high and negate the overall structure.
The broke its key , this was coincided with the – 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 on weekly nodes, a 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?
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“Hope is bogus emotion that only costs you money.” – Jim Cramer