Hello Traders,
CGC gaped to the downside after earnings and make a new low @ 15.33 on a closing basis for the week.
The gap-down can be classified as an „exhausting-gap“. More evidence for this idea will occur, once the gape will be closed, maybe in the coming week. Note the extraordinary volume spike after the earnings, which was the highest since multiple spikes in early January 2019! Investors have fled from the stock and this is, to my view, a typically behavior at the end of a trend, here a declining trend, that I classify as a correction. May in a wave B/2!
If this scenario will be the case, where is the target for the stock?
The count for CGC is following: From a possible high @ 52.47, a wave „B“ of Minor degree, the stock declined in an impulse to the downside, counted as wave „C“ of the same degree.
Within this decline, we can label the chart with a complete (minimum expectation) impulse below the wave ((iii)) low @ 22.76! The gap occurred from 18.50, closing price, to a 16.40, opening price, on November 14 can be classified as an „exhausting gap“! This gap has to be closed pretty quick and if this occurs a high above 21.68 will give more evidence that the stock has bottomed!
A common target for the end of the decline, could be around the 14.43, where wave ((v))=((i))! At 13.52 the stock has declined to a .786 Fibonacci of the total advance (as per my chart history). So the range from 14.43-13.52 is a common range for the end of the decline!
So, let`s follow the stock`s behavior in the coming days and weeks and I will update the chart if anything important happens.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
CGC gaped to the downside after earnings and make a new low @ 15.33 on a closing basis for the week.
The gap-down can be classified as an „exhausting-gap“. More evidence for this idea will occur, once the gape will be closed, maybe in the coming week. Note the extraordinary volume spike after the earnings, which was the highest since multiple spikes in early January 2019! Investors have fled from the stock and this is, to my view, a typically behavior at the end of a trend, here a declining trend, that I classify as a correction. May in a wave B/2!
If this scenario will be the case, where is the target for the stock?
The count for CGC is following: From a possible high @ 52.47, a wave „B“ of Minor degree, the stock declined in an impulse to the downside, counted as wave „C“ of the same degree.
Within this decline, we can label the chart with a complete (minimum expectation) impulse below the wave ((iii)) low @ 22.76! The gap occurred from 18.50, closing price, to a 16.40, opening price, on November 14 can be classified as an „exhausting gap“! This gap has to be closed pretty quick and if this occurs a high above 21.68 will give more evidence that the stock has bottomed!
A common target for the end of the decline, could be around the 14.43, where wave ((v))=((i))! At 13.52 the stock has declined to a .786 Fibonacci of the total advance (as per my chart history). So the range from 14.43-13.52 is a common range for the end of the decline!
So, let`s follow the stock`s behavior in the coming days and weeks and I will update the chart if anything important happens.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!