Canopy Growth Corporation - running out of steam
Updated
This is an update to my previously published idea on CGC with some slightly different indicators.
MACD is showing bearish crossover, this has been a solid indicator for this stock in the past when it has been trending (the fakeout was during a period of weak momentum). See the examples highlighted.
Volume is declining, what an eyesore.
With that said, the moving averages have yet to show any crossover and in fact far from it, so that is something of a conflicting signal.
There is a rather rough long term trendline (that has already been violated for a month) will be interested to see if this is respected, if so for 7 or so periods I would consider buying there. Otherwise looking to support at the 25 mark.
The original trading idea still stands, curious as whether the trendline is invalidated, definitely looking bearish for coming weeks.
MACD is showing bearish crossover, this has been a solid indicator for this stock in the past when it has been trending (the fakeout was during a period of weak momentum). See the examples highlighted.
Volume is declining, what an eyesore.
With that said, the moving averages have yet to show any crossover and in fact far from it, so that is something of a conflicting signal.
There is a rather rough long term trendline (that has already been violated for a month) will be interested to see if this is respected, if so for 7 or so periods I would consider buying there. Otherwise looking to support at the 25 mark.
The original trading idea still stands, curious as whether the trendline is invalidated, definitely looking bearish for coming weeks.
Note
Looking at the MACD, once Canopy has had a run, it tends to be bear for 2-4 months.If only looking at the MACD, I would expect to sit on the sidelines for around 60 days before looking for an entry and a positive change in trend.
I would also be looking for a positive moving average crossover.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.