CGC is indecision defined.
CGC today printed a daily inside bar and intraday we saw very choppy action. I definitely did not expect this after such a strong day Monday that broke daily resistance. Today's volume is in line with yesterday's volume, which is also unusual for an inside bar day. RSI is back within the descending wedge pattern after rejecting from the attempted breakout yesterday, so the hidden bullish divergence on the MACD and RSI hasn't yet, in fact, played out.
The key daily support to keep the bulls in control is 46.42, but losing the low of Monday 47.49 would be enough of a bearish signal to me.
The key daily resistance to break to see continuation is 51.21.
The bull break yesterday with no followthrough is concerning and had me looking for a wedge, but I find it difficult to draw a wedge pattern. Looking at the hourly chart I feel the pattern is more of a parallel channel, but I'm not really a fan of my trendline either given it's drawn from wicks (not real bodies) and I have a wick-violation of the trendline.
The hourly MACD is also showing hints of hidden bullish divergence but I cannot draw this line as far back as I can draw the price channel so I give that divergence less weight. The RSI also does not back the divergence up; another notch against the possibility. The conflicting signals I'm seeing across different timeframes don't give me a lot of confidence on the direction we're looking and I'm really going to have to see a break of our key daily range to get a clear signal on where we should be looking.
We are now a full month without seeing two green days in a row. Every red day we see between now and legalization is a significant strike against the possibility of seeing all time highs into Oct 17th.
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.
The key daily support to keep the bulls in control is 46.42, but losing the low of Monday 47.49 would be enough of a bearish signal to me.
The key daily resistance to break to see continuation is 51.21.
The bull break yesterday with no followthrough is concerning and had me looking for a wedge, but I find it difficult to draw a wedge pattern. Looking at the hourly chart I feel the pattern is more of a parallel channel, but I'm not really a fan of my trendline either given it's drawn from wicks (not real bodies) and I have a wick-violation of the trendline.
The hourly MACD is also showing hints of hidden bullish divergence but I cannot draw this line as far back as I can draw the price channel so I give that divergence less weight. The RSI also does not back the divergence up; another notch against the possibility. The conflicting signals I'm seeing across different timeframes don't give me a lot of confidence on the direction we're looking and I'm really going to have to see a break of our key daily range to get a clear signal on where we should be looking.
We are now a full month without seeing two green days in a row. Every red day we see between now and legalization is a significant strike against the possibility of seeing all time highs into Oct 17th.
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.
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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.
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.