CGC exiting grandsupercycle descending channel. Elliot FLAT abcAs title suggests,
CGC is exiting its long term descending channel after completing a elliotwave FLAT abc correction.
Bottom @ 1.272 Fib trend extension.
Canopygrowth
The Difference Between A Death Cross And A Golden Cross?What Does The Death Cross Tell You?
The death cross occurs when a short-term moving average (typically 50-day SMA) crosses over a major long-term moving average (typically 200-day SMA) to the downside and is interpreted by analysts and traders as signaling a definitive bear turn in a market.
The opposite of the death cross occurs with the appearance of the golden cross, when the short-term moving average of a stock or index moves above the long-term moving average. Many investors view this pattern as a bullish indicator. The golden cross pattern typically shows up after a prolonged downtrend has run out of momentum. As is true with the death cross, investors should confirm the trend reversal after several days or weeks of price movement in the new direction. Much of the process of investing by following patterns is self-fulfilling behavior, as trading volumes increase with the attention of more investors who are driven in part by an increase in financial news stories abut a particular stock or the movement of an index.
Limitations Of Using The Death Cross
All indicators are “lagging,” and no indicator can truly predict the future. Once & while a death cross can produce a false signal, and a trader placing a short at that time would be in some near-term trouble. Despite its apparent predictive power in forecasting prior large bear markets, death crosses also do regularly produce false signals. Therefore, a death cross should always be confirmed with other signals and indicators before putting on a trade.
Is Canopy trading in a bull flag? Or possibly a descending triangle, but the 200 day MA has held since roughly March 18th 2020, building a nice stair-case like pattern.
Canopy Growth - nice entry soonRSI Divergence on 4 hr and daily time frame should come with one more lower low. To me, this may be a great entry for a long to about 18-19 dollar area.
Good Luck!
Canopy Growth Corporation $CGCdouble bottom and positive divergence for $CGC. Watch for break out of $25.64
Canopy Growth ($WEED) is a price floor finally forming?Canopy Growth, widely-considered one of the most successful public companies in the cannabis sector, has shown a pretty volatile history as traders try to set prices and speculators skew supply and demand in this nascent industry. One thing is certain, many of the traded cannabis companies will fail commercial, some are simply shell companies holding portfolios full of other shell companies in cannabis, bioceuticals, vaping and cosmetic etc. Canopy Growth, however, is definitely considered to be a company to watch and which all cannabis stock investors should hold.
Obviously, this area underwent a hype cycle where prices became hugely inflated far beyond the capacity of these companies to deliver profits at the time, but what does the future hold? The fundamentals here are good with increasing cannabis use across all demographics, however they will largely be determined by legislation. It's a case of wait and see, but cannabis bulls are optimistic here. From a technical perspective, we need to ask whether these previously high growth stocks could be in a secular bull market, that is a market displaying continuous net growth characterized by short-term and alternating bull and bear phases. If this is the case, we should expect to find the bottom for Canopy Growth around here. Technically we should see long-term support structure develop here, which tests the price floor a number of times indicative of accumulation.
For cannabis bulls none of this matters, they will be buying here anyway.
---------------------------------------------------------------------------------------------------------------------------------------------------------
weedmoon -- Pumping Weed Stocks to the Moon
All information is provided informally, without any acceptance of liability or guaranty on the part of the author "weedmoon".
All trades made by the reader are the sole responsibility of the reader.
420 Ho!
CGC Likely To Lose $15 Support#CGC #canopygrowthcorp – Canopy closed last week just above a support level(blue line) that stems back to the price peak of $14.39 seen in November 2016. The most recent test of this level prior to Friday’s close was in November of 2019 which came after CGC lost -73% from a high of $52.74 in April 2019. Price bounced 80% off of support in November 2019 to a high of $25.97 in January of this year before retreating again and falling -40% to current levels.
In general, the more times price tests a support level the more likely it is to fail, so the fact that CGC is testing this level again after a recent bounce from it this past November is not a good sign. The recent decline in price over the past two weeks can be attributed to overall equity market weakness due to coronavirus fears which is leading to a slowdown in total global economic activity, as well as CGC’s recent round of layoffs which saw 500 jobs lost with the closure of two facilities, and the shelving of plans for another facility which was in the works.
The Price Percent Oscillator below the chart is trending below its midline(0 level) and rolling over which indicates that price has negative momentum. The green PPO line is close to crossing below its purple signal line which is a negative crossover and indication that a further decline in price is likely as negative momentum increases.
Based on the current price trend and global market selloff, the probability of CGC losing support at $15 is high which may result in a further -50% decline to sub $10 and back to levels not seen since 2017. Target area is $5-$10 shown in yellow.
Seeing as how CGC is the cannabis sector leader by market capitalization we can expect to see price weakness here spill over into the rest of the sector as traders look to CGC for signs of overall sector health.
CGC Monthly Reversal Candle Setup#CGC -#CGC Canopy Growth Corp has created a bearish reversal pattern on the monthly chart that is similar to an Evening Star Reversal pattern. The current reversal pattern doesn’t fulfill the requirements to be a true Evening Star Reversal due to it not occurring at the top of an uptrend in price, but it could be a signal of downtrend continuation, especially when taking in to account the recent bearishness across all markets over Covid19 fear and the impacts that the virus is having on local economies and the global supply chain.
Evening Star Reversals are when a move up in price(candle 1), is followed by a doji/spinning top candle(2) followed by a move down on candle 3 that retraces at least 50% of the first candle in the three candle pattern. This pattern shows traders initially are bullish on candle 1 by pushing price higher, then become indecisive on candle 2 which creates upper and lower wicks of equal length with a monthly close near the monthly open which creates a small candle body. On candle 3 they take price decisively lower and retrace half of the pattern move.
While this candle pattern setup is bearish, in needs confirmation on the next candle via a price move below the low made on candle 3. In CGC’s case, a monthly close in March below $18.78 would be pattern confirmation and likely mean more downside for price going forward.
The PPO and RSI indicators below the chart are also showing negative price trend and momentum. The PPO is in a negative cross and declining with a fresh PPO line(green) move below the 0 level which indicates a negative trend for price. The RSI is also in a negative cross and declining with the RSI line colored purple and declining below its signal line(white). The RSI is also below the 50 level with a purple shaded background which indicate a negative momentum trend behind price.
CGC Support TestCanopy Growth Corp is down roughly -15% on the trading week as global fears over Covid19 have finally gripped markets after a month of essentially dismissing the potential negative economic impacts.
CGC is currently trading within a parallel channel which began forming in late 2019, with an upper resistance level of $22.50 and a lower support level of $17.80. Yesterday saw traders close price just above the lower support level, or the bottom of the parallel range, which is an important level to watch in Fridays trading. A hold above the lower support line would indicate that bulls are still attempting to keep price in a consolidation range, while a close below the lower support level would indicate that bulls are losing the upper hand and becoming more fearful of Covid19's potential impact on economic activity across all sectors.
Given the severity of the market decline this week with indices such as the DOW Jones having its worst 1-day decline in history yesterday, its fastest 10% decline ever, as well as its worst 6-day performance since 1928(just before the Great Depression), its likely that traders will be unwilling to buy the dip in equities and hold stocks over the weekend.
Should traders fail to hold CGC above the lower range of the orange channel today, the next likely target is a retest of November 2019's low of $13.81 shown in blue.
Both indicators below the chart are showing negative momentum and trend behind price with the PPO in a bearish crossover and now moving below the centerline, as well as the RSI in a decline and also below its centerline as well.
Current view is bearish due to the overall fear gripping markets right now and CGC's position within the channel after yesterdays close.
CGC Gap FillCanpoy Growth Corp's price filled the gap(blue dashed lines) that was created on February 13th -14th with a close today of $20.30, a gap fill that was anticipated after price failed to move higher last week and back into the rising trend channel(orange lines). Today's price move can mostly be attributed to the overall selloff in global equities last night into today over Covid19 fears, but likely would have traded lower and filled the gap even without the overall market decline.
The key level to watch now that the gap has been filled is the last low made before price attempted to regain the uptrend channel, the low being $18.65 indicated by the yellow line. That yellow line stems from the low made on February 11th and was the last level of price demand before price moved higher, ultimately stalling out at the lower line of the uptrend channel which acted as resistance rather than the support level it had been previously during the uptrend. In technical analysis, previous levels of price support become price resistance once they are violated to the downside.
A move below the yellow line would create a pattern of lower lows and lower highs in price after the failed attempt to regain the uptrend channel and could be viewed as a return to a negative price trend. For now price remains neutral and will remain so until/unless price moves below the yellow line, at which point a bearish case can be made for price. A move above last weeks highs would be bullish, but looks unlikely as long as global traders are being spooked by Covid19 and its potential short and intermediate-term affect on global supply chains.
Ascending Triangle, is Canopy trading in a hidden pattern?There's also merit for a another Inverse H&S to play out here, after a few more trading days next week we may see the shoulder continue to develop or a retest of the bottom upward sloping line of the Ascending Triangle, which would also negate the inverse H&S narrative, but the bottom of the ascending triangle could still hold & result in a bullish outcome, keep in mind these patterns have a tendency to finish roughly 70% to 80% way through the pattern in either direction frequently.
Key Takeaways
An inverse head and shoulders is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends
An inverse head and shoulders pattern, upon completion, signals a bull market
Investors typically enter into a long position when the price rises above the resistance of the neckline.
An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since the price will typically breakout in the same direction as the trend that was in place just prior to the triangle forming.
Key Takeaways
The trendlines of a triangle need to run along at least two swing highs and two swing lows.
Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.
CGC GapCGC created a gap in price last week when it made the jump back above $20 and has so far failed to move back above a previous support line(orange) which is now acting as resistance. Gaps tend to be filled in charts so the longer price fails to move back above the orange line, the greater the likelihood that the gap will be filled which means price will likely retreat back down toward $20 to close the gap.
Cannabis Stocks / Should Investors Buy Canopy Growth in 2020 ? It's Now Abundantly Clear: Canopy Growth Is in a Different League From Aurora Cannabis.
The two Canadian cannabis companies' latest quarterly results prove it.
Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) lead the industry in production capacity.
They both claim the highest market shares in the Canadian adult-use recreational marijuana market.
The two companies reported their latest quarterly results last week.
Canopy Growth announced results that were much better than expected.
And it's now abundantly clear that Canopy Growth is in a different league from Aurora.(Source:The Motley Fool)
Disclaimer:
We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature,
and are therefore are unqualified to give investment recommendations.
Always do your own research and consult with a licensed investment professional before investing.
This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
Is Canopy trading in a Descending Triangle?With earnings approaching next week & a new CEO that comes from STZ who also happens to be an accountant, I wouldn't be surprised if $WEED financials are becoming chaos in order.
Only time will tell, but this could end up being a giant bull flag as well. The 200 Day MA isn't that far away either, but on the RSI is looks like a H&S is forming.
Descending Triangle.This is the "exact" same chart from the other day but on a 6 month line chart; which only shows the daily "closing price" as opposed to the 1 year time frame candle chart I posted on Feb 6th which shows more trades.
Notice where the rejection point came into play on Canopy's parabolic price move on Friday? The downward sloping trendline of the descending triangle seems to be in play, and the sell volume seems incredibly bearish.
Every time Canopy's RSI gets this high we see a dump in the share price as well.
The neckline area of the Inverse Head & Shoulders pattern which called the temporary bottom seems to be holding as support for the time being, interesting.
Aurora Cannabis Bottomed - Mega Long Opportunity!Aurora Cannabis is one of the leaders in the new and emerging cannabis industry in Canada. They plan to stick around and I believe they will for a variety of reasons even though there is so much fear surrounding this industry at the moment. I'll elaborate further on this idea but for now let’s get to the TA.
I’ve recently called LONG on this, but it has since taken another small leg down.
Now the slope of downward price trajectory has slowed down and flattened, not completely but downward momentum has slowed down nonetheless, but trading volume has spiked. This speaks volumes to me, no pun intended. This shows me the possibility of a trend reversal occurring, and the bullish divergence on the RSI supports that idea as well.
Now can the stock dip further? Sure, but I’m setting a stop loss underneath the support, mainly because we are on a major key long-term support line. If we break below this, it’s going to be ugly in my opinion.
So why long? I view this as a low-risk high reward play for me considering what the technical indicators and current price level show me. I’m no fortune teller, I’m simply seeing a possible high-reward opportunity in front of me.
Don’t forget there are a whole lot of people who FOMO’d into this industry at all-time-high prices and rode it all the way down. These are the same people spreading fear about the cannabis industry but the truth is this is when smart money buys.
The Bottom Line:
9 months oversold on RSI, highest point reached being 60 and quickly dumped down back to oversold territory.
Downtrend momentum has slowed down with breakout in volume
Bullish divergence on RSI
Price has already declined 88% from it’s all-time high.
Buy the fear, sell the greed.
This is not trading advice, just my own opinion and ideas.
Excited to see how this plays out. Safe trading, cheers!
CGC Loses UptrendCGC has fallen out of its uptrend channel(orange lines) and has returned to a previous consolidation range(blue lines). The trend for now has shifted back to neutral as long as price is within the blue lines; a break back above the blue channel would be bullish, a break below bearish. The PPO is indicating a negative short-term trend with the green PPO line declining below its purple signal line. Worth noting is that the green PPO line is close to crossing below the centerline which would indicate a more substantial downtrend should the PPO continue to fall below the centerline. For now, the lower blue line near $17.50 is the level to watch for support, a move below that line would shift the trend to bearish.
CGC Trendline FailCGC saw an open and close yesterday below the lower support line of a rising channel(orange lines). Using a measured move on a trendline break, price could potentially see a -25% decline which would roughly equal a -$5.50 loss taking price back down near $16. Keeping an eye on this one today as CGC tends to dictate prices for the entire cannabis sector.
CGC Testing Channel SupportCGC is testing the lower support line of a rising channel, and for now is slightly below it. A close today above the trendline would keep price leaning bullish whiule a close below would indicate a potential loss of upward momentum. Lower level to watch for support is near $18(yellow line); a close below that level going forward would be considered bearish.
Another cannabis stock ready to fly high? NYSE:ACB looks very interesting since mid January bottom. Good odds that similiar pattern (inverted H&S) will be playing out, as it was the case before with NYSE:CGC , which is rallying nicely since its breakout in early December.
