McGuireTO

Looking at previous WEED.TO all time highs for clues into next w

TSX:WEED   CANOPY GROWTH CORPORATION
The similarities I've highlighted here look better on WEED.TO than on CGC because Jan 15th saw the TSX trade but not the US exchanges. That said I'm looking at similarities in the first oversold bounces following the last two all time highs at 44.00 in January and 48.72 in June. Subsequent those bounces we saw a tightening range playing out across more than a week of trading before the equilibrium finally broke - down.

In each of the previous two examples the price set a lower low compared to the low of the oversold bounce. It's very possible this happens again, but with legalization being such a huge catalyst, it's also quite likely that support holds and we enter into a larger daily equilibrium prior to continuation of the current bull move.

The most important support to me heading into next week is 52.81. The best case scenario for the bulls is to hold 59.70 to show they're in absolute control over the coming days.

There are several fundamental things I'm watching here. CNBC is covering the MJ sector numerous times each day, and I've noticed a shift in their coverage from "stocks rocketing higher", to "we're in a bubble." This shifted with the implosion of TLRY on Wednesday and the 50% drop in share price within an hour (now down a full 65% from the highs). CNBC has an agenda here, and that's currently a risk to bullish positions in the sector.

Second is the amount of short interest in these stocks right now. each of WEED.TO, ACB .TO, and APH .TO are among the most shorted stocks on the TSX, and each have had an incredible increase in short positions opened over the course of September (regrettably I do not know if this information exists for CGC - if someone has this info please hit me up in the comment section below!)

Finally, there is the potential of other major catalysts such as global companies entering into the sector in the form of investments, partnerships, and other agreements or LOIs. These events have the potential of squeezing short positions to cover, now so they can enter again later.
really deep and good
thanks!
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@PP80, thanks for the feedback!
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