Bullish shark bounce on Friday. Expect choppiness in the 50-61.8% retrace area as it tussles w/ resistance @ 47 and the median line of the greater channel that it's been in since Nov 2017.
How it resolves here will IMO determine its direction for the medium term. A reversal out here will change the bullish shark to a bearish 5-0 pattern that could potentially kick it out of this consolidation wedge. A continuation upwards IMO will break the wedge and a retest of the ATH within weeks.
While I'm long term bullish on CGC, I'm expecting some weakness in the markets later this week which could spell short term weakness for this stock. I'm somewhat expecting the 5-0 to form, the question is whether it will be able to hold the consolidation pattern and not fall further. Also alarming is that the stock has been in distribution mode throughout this entire consolidation... not good.
How it resolves here will IMO determine its direction for the medium term. A reversal out here will change the bullish shark to a bearish 5-0 pattern that could potentially kick it out of this consolidation wedge. A continuation upwards IMO will break the wedge and a retest of the ATH within weeks.
While I'm long term bullish on CGC, I'm expecting some weakness in the markets later this week which could spell short term weakness for this stock. I'm somewhat expecting the 5-0 to form, the question is whether it will be able to hold the consolidation pattern and not fall further. Also alarming is that the stock has been in distribution mode throughout this entire consolidation... not good.