Hello Traders,
CGC „sky-rocket“ as per the past hours of trading and jumped from an oversold 13.93 to a 21.56 in just 16 hours. At the short term, it could be possible that the stock is heavily oversold, and a correction is just around the corner. But let<´s look to the behavior of the stock after the earnings this week!
On an hourly chart and as well a daily one, we can see some strong buying „arguments“ for this stock. At the hourly chart, there is a „bullish-engulfing2 to observe, as it is the case at the daily chart. So we have two strong buy signals on different time frames. More important becomes the message from the daily chart. Here, a „three-white-soldier“ formation took place. A very, very strong buy signal that indicates, after a corrective movement, that the trend has changed, as long as the level of 13.91 is valid!
I like the bullish side for this stock, as well I do for Aurora Cannabis (ticker symbol: ACB)!
But, where are the targets for a possible correction in CGC?
As long as the high at 21.55 is valid, a running correction can terminate at the following levels. Below 20.71 a range could be around ~ 18.78-18.64 and 18.04-17.74. The latter is the 1.382 FibExtension of the decline from 21.55-19.61 and the 17.74 is the 0.5 Fibonacci of the advance from 13.91-21.56!
The level of 18.84 in the area, where wave „((c))“ =“((a))“! So a widening range from 18.78-17-74 as it looks now!
More bearish potential exist, `cause a 0.618 Fibonacci is at 16.84. After this quick and massive buying-pressure for CGC, I await a longer running correction in the coming hours and days!
A quick longer-term outlook! If at 13.93 a bottom was reached, it could be a wave „22 of higher degree. So it could be possible that the stock has a great future ahead with a much higher price in the coming weeks and months! A mid-term target could be the level of 28.89, short-term at 22.48!
Have a great weekend...
ruebenenase
Feel free to ask or comment.
Trading this analyze is at your own risk!
CGC „sky-rocket“ as per the past hours of trading and jumped from an oversold 13.93 to a 21.56 in just 16 hours. At the short term, it could be possible that the stock is heavily oversold, and a correction is just around the corner. But let<´s look to the behavior of the stock after the earnings this week!
On an hourly chart and as well a daily one, we can see some strong buying „arguments“ for this stock. At the hourly chart, there is a „bullish-engulfing2 to observe, as it is the case at the daily chart. So we have two strong buy signals on different time frames. More important becomes the message from the daily chart. Here, a „three-white-soldier“ formation took place. A very, very strong buy signal that indicates, after a corrective movement, that the trend has changed, as long as the level of 13.91 is valid!
I like the bullish side for this stock, as well I do for Aurora Cannabis (ticker symbol: ACB)!
But, where are the targets for a possible correction in CGC?
As long as the high at 21.55 is valid, a running correction can terminate at the following levels. Below 20.71 a range could be around ~ 18.78-18.64 and 18.04-17.74. The latter is the 1.382 FibExtension of the decline from 21.55-19.61 and the 17.74 is the 0.5 Fibonacci of the advance from 13.91-21.56!
The level of 18.84 in the area, where wave „((c))“ =“((a))“! So a widening range from 18.78-17-74 as it looks now!
More bearish potential exist, `cause a 0.618 Fibonacci is at 16.84. After this quick and massive buying-pressure for CGC, I await a longer running correction in the coming hours and days!
A quick longer-term outlook! If at 13.93 a bottom was reached, it could be a wave „22 of higher degree. So it could be possible that the stock has a great future ahead with a much higher price in the coming weeks and months! A mid-term target could be the level of 28.89, short-term at 22.48!
Have a great weekend...
ruebenenase
Feel free to ask or comment.
Trading this analyze is at your own risk!