Today’s will be on CGC , bouncing of its all-important weekly support, currently facing resistance from the 21 . It must break daily support, or this is simply another lower high.
Points to consider,
- Macro trend
- Weekly support respected
- Daily resistance is a key level
- coming of oversold
- Stochastics projected up
- below average
- VPVR Flat
CGC has been putting in consecutive lower highs on its macro time frame, a strong established bear trend. Weekly support held promptly, a sign of being a true trade location.
Daily resistance needs to break for a confirmed trend change, failure will simply mean a lower high.
The is coming of oversold conditions, will most probably return to its neutral zone. Stochastics on the other hand still has momentum stored to the upside.
The current is below average, CGC needs an increase in bull to test daily resistance- it is looking quite weak at current given time.
VPVR is currently flat, means low of transactions at current range, CGC could trade in this region for a while.
Overall, in my opinion, CGC needs to break daily resistance, failure will simple mean yet another lower high, thus lower price levels likely.
What are your thoughts?
Please leave a like and comment,
“Trading doesn't just reveal your character, it also builds it if you stay in the game long enough.”
― Yvan Byeajee
CGC did bounce nicely, but failed to break $13.65 support turned resistance. If you bought below $10, yesterday was profit taking, in my honest opinion. Today, markets will either be green or red, depending on that deal Trump is bragging about. It all seems so very fragile to me. If CGC breaks $13.65 today, the next target would be $17.50. I don't see $25 in the cards for a long time to come.
To be honest, I think CGC is lagging the broader market and still has to complete its retrace. As long as we don't see a $5-$6 valuation, there are better plays out there, offering similar fundamentals, but more upside. APHA has an excellent cash position and is grabbing market share and is trading at or below fair value. Will bounce to a simple $6 for a 300% gain if you got in at $2. There are more assets that trade at or below fair value, with solid fundamentals and good upside. CGC's fundamentals have weakened significantly, and I think this is the difference to consider carefully.