CGC has seen a potential 5 waves move up and a 3 waves move down. RSI on the daily has bounced up from support region. Friday candle looks like a reversal. This chart looks like a good entry opportunity for a potential wave 3 or a wave C move to the upside. A tighter stop loss would be below Friday's low. Or a more flexible one would be below last wave 2 low. Breaking 2.34 level would mean a much deeper drop and the upside count will come into question. In the current depressed market, it's difficult to go long on anything, let alone pot stocks. But the setup looks rather enticing at the moment. If things work out, take profit markers are at 1, 1.236 and 1.618 fib extensions. As fib levels hit, I will be taking off 30% at each level and move stop loss up. That's my plan, not a financial advice.
Kommentera:
Failed at the trendline resistance. Out for now with decent profits. Will look for a re-entry. Conservatively, a break above the trendline would be a better place to enter. If the July low stays intact, there will be some good upside opportunities. If last low breaks, it might fall another 20-50% to a buck and some change.
