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CGC - this rally is part of a corrective wave 4 up
I do not think the last low made at 13.81 on 11-19-2019 was the major bottom.
I think it was rather was a temporary bottom made by wave 3 of ( C ) down.
You can see on the chart that $CGC topped at 59.25 on 10-16-2018.
The only good thing about the last bottom is that tagged 76.4% retracement of the whole rally from the lows of 2015 to the top of 2018.
The pullback off the 2018 top has a clean (A)-(B)-(C) corrective structure.
And wave ( C ) down has an impulsive count. That means it will get completed after we can count five micro waves inside that wave ( C ) down.
I count the last bottom as wave 3 down and this move off that low as a corrective A-B-C up structure in wave 4 up.
The ideal target for wave 4 up is slightly over 26.00.
This is where we have:
– 41.4% retracement of wave 3 down; and
– 100 % extension of subwave A of 4.
After completion of that corrective wave 4 down we should get another A-B-C down structure in the final wave 5 of ( C ) down.
It may stretch to 85.4% retracement around $10.
CGC - Daily chart updated on 1-14-2020
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