McGuireTO

CGC bears assert dominance, finally breaking the daily uptrend

NYSE:CGC   CANOPY GROWTH CORPORATION
CGC broke the daily equilibrium bearish today and closed down 6.5%. a small bounce at the end of the day cooled off RSI levels and we're no longer oversold on any timeframe. I was looking forward to an oversold bounce tomorrow but after hours trading further cooled off RSI and finished trading in a bear flag setup.

Two daily supports were broken today, after low of today our next support is 40.68 - that's a good 10% further to the downside. I'm personally going to be patient waiting for a setup I like. If we get a big gap down tomorrow, for example, opening below $42.00, that's a setup that will have me interested. Otherwise, RSI levels have cooled enough that we could easily see another -6% day tomorrow.

I've been talking a lot in my past ideas about the psychology of what's going on right now in the sector. To further drive home how sentiment has shifted from bulls to bears, note that it's been a full three weeks since we've had two green days in a row - and this is when everybody has been expecting a huge bull run into October 17th. I'm not going to be entering positions based on what I want to happen, I'm going to watch the charts for a setup that favours a bull entry.
Love the analysis you do. Keep it up! I've been thinking the same thing with this stock too as I've kept my eye on it
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McGuireTO steveyyt
@steveyyt, thanks, I appreciate the feedback!
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