CGC appears to be in a Wyckoff pattern after a significant downtrend for all of 2019. In this video I examine if we're looking at a pattern of accumulation (bull thesis) or distribution (bear thesis).
Factors supporting Accumulation:
- Volume on the Signs of Strength days
Factors supporting Distribution:
- OBV
- Chaikin Money Flow
- MacD
- The presence of a Wyckoff Spring
- Similarities with previous CGC Wyckoff Distribution Pattern
- Lack of similarities with WORK Wyckoff Distribution Pattern
What invalidates either thesis?
We will learn an awful lot by the next test of 17.62. A bear break and close below this level would strongly support the bear thesis. A defence of this level, or a bear break that gets no followthrough would lend credence to the bull thesis.
And finally, a convincing bull break above and close over 22.50 would confirm the bull thesis
Factors supporting Accumulation:
- Volume on the Signs of Strength days
Factors supporting Distribution:
- OBV
- Chaikin Money Flow
- MacD
- The presence of a Wyckoff Spring
- Similarities with previous CGC Wyckoff Distribution Pattern
- Lack of similarities with WORK Wyckoff Distribution Pattern
What invalidates either thesis?
We will learn an awful lot by the next test of 17.62. A bear break and close below this level would strongly support the bear thesis. A defence of this level, or a bear break that gets no followthrough would lend credence to the bull thesis.
And finally, a convincing bull break above and close over 22.50 would confirm the bull thesis
Comment:
So certainly embarrassing - Somehow some malware has been inserted into my website so the URL in the video is currently problematic. I will get this cleaned up and secured right way and apologies for the inconvenience