Hello Traders!
Update on CGC – Canopy Growth Corporation, testing critical support in a potential falling wedge pattern that has a bullish divergence coming to fruition, will CGC have a relief rally from here?
Points to consider
- Trend Bearish with consecutive lower highs
- Major structural support being tested
- Resistance at .50 Fibonacci
- EMA’s giving price resistance
- Stochastics projected upwards
- RSI converging from price
- Volume below average
- Open Gap
- Technical target in confluence with .50 Fibonacci Level
CGC has been trading in a distinctive bear trend within this falling wedge formation that has yet to be broken. We have consecutive lower highs as the trend comes into its probable apex zone.
Major structural support is getting tested, currently holding true, this is critical as it’s in confluence with the falling wedge’s apex zone. A break of this level will negate the formation, leading to local support being more probable to be tested. Resistance on the other hand is at the .50 Fibonacci level, this is a key area as it is in confluence with the technical target of the falling wedge…
The Stochastics is projected upwards; momentum is in favour of the bulls if price where to break up and above from current resistance line. The RSI is currently putting in higher lows; divergence from price as it puts in lower lows, this just further confirms the theory of a bullish divergence playing out.
Volume is below average at current given time; we need to see an influx of volume upon breakout to ensure that it’s not a fake out. A breakout and an influx of volume will make the EMA’s cross bullish which will confirm the trend reversal as currently it’s giving price heavy resistance.
Overall, IMO, CGC is more probable to break bullish from this formation as we are testing a critical support level, we also have an open gap, and gaps always tend to fill if you look at price history. The technical target for the falling wedge will be met at the .50 Fibonacci which is in confluence with structural resistance.
What are your thoughts on CGC?
Please leave a like and comment,
And remember,
Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets - Michael Carr
Update on CGC – Canopy Growth Corporation, testing critical support in a potential falling wedge pattern that has a bullish divergence coming to fruition, will CGC have a relief rally from here?
Points to consider
- Trend Bearish with consecutive lower highs
- Major structural support being tested
- Resistance at .50 Fibonacci
- EMA’s giving price resistance
- Stochastics projected upwards
- RSI converging from price
- Volume below average
- Open Gap
- Technical target in confluence with .50 Fibonacci Level
CGC has been trading in a distinctive bear trend within this falling wedge formation that has yet to be broken. We have consecutive lower highs as the trend comes into its probable apex zone.
Major structural support is getting tested, currently holding true, this is critical as it’s in confluence with the falling wedge’s apex zone. A break of this level will negate the formation, leading to local support being more probable to be tested. Resistance on the other hand is at the .50 Fibonacci level, this is a key area as it is in confluence with the technical target of the falling wedge…
The Stochastics is projected upwards; momentum is in favour of the bulls if price where to break up and above from current resistance line. The RSI is currently putting in higher lows; divergence from price as it puts in lower lows, this just further confirms the theory of a bullish divergence playing out.
Volume is below average at current given time; we need to see an influx of volume upon breakout to ensure that it’s not a fake out. A breakout and an influx of volume will make the EMA’s cross bullish which will confirm the trend reversal as currently it’s giving price heavy resistance.
Overall, IMO, CGC is more probable to break bullish from this formation as we are testing a critical support level, we also have an open gap, and gaps always tend to fill if you look at price history. The technical target for the falling wedge will be met at the .50 Fibonacci which is in confluence with structural resistance.
What are your thoughts on CGC?
Please leave a like and comment,
And remember,
Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets - Michael Carr
