Heading into next week I'm still watching CGC in a 4hr equilibrium. Our key support is a double bottom of 37.32 and 37.35. Canopy finished the day with some weakness looking down towards that level after setting a lower high of 40.37, our new key resistance to break.
We can see the 12EMA on the 4hr driving the price down continually since the all time high on Oct 16th. Bulls need to break above 40.37 and close above that 12EMA in order to get this bounce underway, where we would look to set a lower high on the daily timeframe. The strength of this bounce will give us clues on what to expect next.
I'm watching the potential for hidden bearish RSI divergence with the indicator making higher highs and the price making lower highs; however the MACD has started to curl upwards a bit giving a conflicting signal. Further, when turning off extended hours on the 4hr chart, the bull volume does seem greater than the bear volume.
I have pulled a fib on the daily chart from the low of August consolidation to the all time high, and notice that we bounced right off the .65 retracement. That golden pocket range is a high profitability zone to enter into a long position for resumption of an uptrend, and for anybody who has entered position in the past few days based on this indicator, be certain to have a stop loss set for the appropriate level on the bear break of this 4hr eq - if your plan is to exit the trade on a bear break, that is.
I'm still not holding any position in the sector, patiently waiting for this downtrend to change and for much more favourable trading conditions. This equilibrium should break Monday and give us some short term direction. The sector at large will likely following CGC on the direction of its break. Until that break comes, I'm being very patient and waiting to re-enter a position.
Key levels for Monday
Support: 37.32
Resistance: 40.37
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For anybody looking at any individual stock it is imperative to keep an eye on the overall market. The correlation of every individual name and sector to SPY -1.76% market is very real and the market is showing significant weakness over the past three weeks.
We can see the 12EMA on the 4hr driving the price down continually since the all time high on Oct 16th. Bulls need to break above 40.37 and close above that 12EMA in order to get this bounce underway, where we would look to set a lower high on the daily timeframe. The strength of this bounce will give us clues on what to expect next.
I'm watching the potential for hidden bearish RSI divergence with the indicator making higher highs and the price making lower highs; however the MACD has started to curl upwards a bit giving a conflicting signal. Further, when turning off extended hours on the 4hr chart, the bull volume does seem greater than the bear volume.
I have pulled a fib on the daily chart from the low of August consolidation to the all time high, and notice that we bounced right off the .65 retracement. That golden pocket range is a high profitability zone to enter into a long position for resumption of an uptrend, and for anybody who has entered position in the past few days based on this indicator, be certain to have a stop loss set for the appropriate level on the bear break of this 4hr eq - if your plan is to exit the trade on a bear break, that is.
I'm still not holding any position in the sector, patiently waiting for this downtrend to change and for much more favourable trading conditions. This equilibrium should break Monday and give us some short term direction. The sector at large will likely following CGC on the direction of its break. Until that break comes, I'm being very patient and waiting to re-enter a position.
Key levels for Monday
Support: 37.32
Resistance: 40.37
_____
For anybody looking at any individual stock it is imperative to keep an eye on the overall market. The correlation of every individual name and sector to SPY -1.76% market is very real and the market is showing significant weakness over the past three weeks.
Comment:
CGC broke 4hr equilibrium bearish and confirmed the daily bear flag. We're in an area with a lack of support here. Next supports are 34.16 and 30.20
Comment:
If we see SPY break down to lower lows, this correlation will favour the Canadian MJ bears