Hello Traders!
Today’s chart update will be on CGC – Canopy Growth Corporation, a potential inverse head and shoulders could be at play in this strong downtrend…
Points to consider,
- Bearish trend with consecutive lower highs
- Neckline as major resistance
- Support provided by the EMA
- Stochastics in upper region
- RSI in rising wedge
- Volume increasing
The overall trend of CGC has been putting in consecutive lower highs, if this inverse head and shoulders come to fruition, it will be the first sign of a trend change, a new higher low.
Major resistance is found at the neckline, tested multiple times, this is a clear level for the bulls to break. Support is being provided by the EMA’s, needs to hold as CGC tests neckline.
The stochastics is in upper region, can stay trading here for an extended period of time, however lots of stored momentum to the downside. RSI itself is coming close to its apex; a break down to its support (blue line) is probable. Volume overall itself is increasing, needs to sustain as this will help with follow through when and if bulls break the neckline.
Overall, in my opinion, the right shoulder will be valid as long as it trades in the orange highlighted zone. CGC needs a convincing break of the neckline that needs to be backed with follow through; this will then change the structure of the overall trend.
What are your thoughts?
Please leave a like and comment,
And remember,
“In trading, everything works sometimes and nothing works always.”
***Please follow me on twitter for daily updates on fundamental news in the MJ and Crypto Speace ! :) Twitter handle in profile link
Today’s chart update will be on CGC – Canopy Growth Corporation, a potential inverse head and shoulders could be at play in this strong downtrend…
Points to consider,
- Bearish trend with consecutive lower highs
- Neckline as major resistance
- Support provided by the EMA
- Stochastics in upper region
- RSI in rising wedge
- Volume increasing
The overall trend of CGC has been putting in consecutive lower highs, if this inverse head and shoulders come to fruition, it will be the first sign of a trend change, a new higher low.
Major resistance is found at the neckline, tested multiple times, this is a clear level for the bulls to break. Support is being provided by the EMA’s, needs to hold as CGC tests neckline.
The stochastics is in upper region, can stay trading here for an extended period of time, however lots of stored momentum to the downside. RSI itself is coming close to its apex; a break down to its support (blue line) is probable. Volume overall itself is increasing, needs to sustain as this will help with follow through when and if bulls break the neckline.
Overall, in my opinion, the right shoulder will be valid as long as it trades in the orange highlighted zone. CGC needs a convincing break of the neckline that needs to be backed with follow through; this will then change the structure of the overall trend.
What are your thoughts?
Please leave a like and comment,
And remember,
“In trading, everything works sometimes and nothing works always.”
***Please follow me on twitter for daily updates on fundamental news in the MJ and Crypto Speace ! :) Twitter handle in profile link
