Speculative names have been getting a lot of attention and $CGC is another one of them. I went long $CGC today due to the nice basing pattern. Weed stocks such as $CRON and $CGC have been in a period of distribution for the past year and recently there have been signs of accumulation in these stock with three high volume green candlesticks in recent months. What further solidified this trade is the existence of a nice Head & Shoulders pattern with a clear neckline. To me, a H&S pattern is never valid unless a clear neckline exist and this is one of those rare moments. The 21EMA crossed the 50MA and both are rising which is another good bullish indicator (Moving average crossover). I went long $CGC at 22.27 with a stop loss at 21.45. Target on the trade is 28.50s.
Comment:
Took profits at 24.85 and moved stop loss to breakeven.
Comment:
Took more profits at 25.70. Still holding 1/2 size. CGC is getting a little crazy here with blow off top formation on the 5m. This might be the short term climax for CGC, however I still believe CGC can make it to 28.50s and above.
Comment:
Price price action today on the 30m chart. Hammered at market open into the 50% Fibonacci Retracement and now at HOD. Sentiment on these bottom base plays have been bullish (CRON, TLRY, SHAK....). I feel another short squeeze coming.
Comment:
Moved stop to 23.50 below the pullback. CGC consolidating and trying to breakout again. I can sense a lot of hype right now (AKA field is crowded). If we breakdown this level, CGC is most likely done for now.
Comment:
CGC starting to form a flag pattern on the daily chart. Volume is drying up during the consolidation. This is exactly what I want to see for CGC to make another leg up.
Trade closed: stop reached:
Stopped out last 1/2 size at 23.23. CGC broke down below pullback lows.