Subscription: Stocks of US companies

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

Trading is risky. Read this important Disclaimer

HIGH RISK WARNING
Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future profits.

Previous Updates

No posts found.
Loading...

Login