Today’s Technical Analysis will be on CGC, bouncing of its all-important weekly support, currently facing resistance from the 21 EMA. It must break daily support, or this is simply another lower high.
Points to consider, - Macro trend bearish - Weekly support respected - Daily resistance is a key level - RSI coming of oversold - Stochastics projected up - Volume 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 RSI 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 volume is below average, CGC needs an increase in bull volume to test daily resistance- it is looking quite weak at current given time.
VPVR is currently flat, means low volume 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?
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And remember,
“Trading doesn't just reveal your character, it also builds it if you stay in the game long enough.” ― Yvan Byeajee
It is clear that the broader cannabis market is trying to bottom, and the stronger assets have maintained themselves quite well in the recent crash. CGC is still very much overvalued though, and that is a point that concerns me. I do like how STZ is executing and their reorganising of the company, away from the business model/approach they had before. I still think we'll get another quarter of high losses though, and smart money will remain on the sidelines as long as the COVID19 peak hasn't arrived. SPY bounced nicely, yesterday, and may continue to look for a lower high, but I don't think we should play long right now.
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.
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.