CGC: Catching Falling Knives is a Dangerous Game!
CGC is an unprofitable company with declining revenue and a high cash burn rate. Sounds... AMAZING! Here are a few reasons why I believe a PUMP in CGC is coming:
1) CGC completed an ABC correction by forming a new yearly low almost tagging the 0.618 trend based fib right on the 1 trend based time fib. Nice "coincidence"!
2) CGC currently trading around the highest volume node in CGC’s history at $2.65.
3) Weekly Bullish Divergence on RSI and MACD. Turning on Heikin-Ashi candles, Weekly RSI is still deeply oversold.
4) On the week of July 18th, 2022, CGC had its second largest volume recording ever at 107 million shares. The only time CGC had a higher volume recording was on the week of October 15th, 2018 at 112 million shares. Funnily enough, that week marked the ATH of CGC. Hopefully the opposite will hold true :D.
5) CGC sentiment is extremely bearish probably from retail capitulation and a barrage of analyst downgrades in 2022.
CGC certainly isn’t reversing trend on its own. The whole entire MJ sector needs a catalyst. Price passing through the 1 trend based time fib is a potential hint that catalyst may be coming soon.
Regardless of TA, if investors REALLY believe in CGC long term, this is a perfect time to add in heavy imo. There's nothing wrong with buying shares at the price which the most shares exchanged hands: $2.65.
1) CGC completed an ABC correction by forming a new yearly low almost tagging the 0.618 trend based fib right on the 1 trend based time fib. Nice "coincidence"!
2) CGC currently trading around the highest volume node in CGC’s history at $2.65.
3) Weekly Bullish Divergence on RSI and MACD. Turning on Heikin-Ashi candles, Weekly RSI is still deeply oversold.
4) On the week of July 18th, 2022, CGC had its second largest volume recording ever at 107 million shares. The only time CGC had a higher volume recording was on the week of October 15th, 2018 at 112 million shares. Funnily enough, that week marked the ATH of CGC. Hopefully the opposite will hold true :D.
5) CGC sentiment is extremely bearish probably from retail capitulation and a barrage of analyst downgrades in 2022.
CGC certainly isn’t reversing trend on its own. The whole entire MJ sector needs a catalyst. Price passing through the 1 trend based time fib is a potential hint that catalyst may be coming soon.
Regardless of TA, if investors REALLY believe in CGC long term, this is a perfect time to add in heavy imo. There's nothing wrong with buying shares at the price which the most shares exchanged hands: $2.65.
Comment:
Could have exited in the $4's, but got too greedy. Exited at $3.8. Micro H/S on LTF and SPX looks ready to take at least a ~5-10% haircut. If the bottom is SET, key word "IF", then this rally was an automatic rally. Expecting a secondary test of the fibs $2.11-$2.68.
