when looking for a pattern (BUY or SELL) we do 3 things .. project, extend, retrace.
in the case of CGC we have a ‘zone’ of support in/around 16.50-20 to look for a buy pattern.
the projection – in this case the simple one is the blue arrow and we have the classic AB=CD or measured moves of equality …
the extension is 1.27 and it lands on the .707
the retracements are drawn from multiple nodes (lows, all time lows, gaps, etc) and they all come in around our zone. the .707 retracement is a by product of the square root of 2 = 1.4142 and it’s inverse 1/1.4142 = .707. Square root of 2 is a big deal w/ regards to numerology.
when we put all this together we get the zone sighted above .. .additionally, note that back in 2017 (when it was only traded on the Canadian Stock Exchange) the largest correction was roughly 65%. if we take a look at the dashed red lines we see that same corrective move – 65% – is present in/around our pattern level.
I’m ‘bullish’ cannabis in general and this appears to be a nice opportunity to get LONG CGC.
take note of Tilray (TLRY) and put this one on your radar screens.
we have a big ‘square out’ occurring and this theory is based on the fact that PRICE and TIME are the same thing … so, the theory goes, if we start from a low (in this case) and go up to a high then we have a certain amount of PRICE. (in this case 279 points) so, from that HIGH we convert the PRICE to TIME and we get 279 calendar days and we can also use solar degrees and other ‘stuff’ to look for possible turns ..
so, from the former ATH we have a PRICE and TIME square out and we can also use a technique taught to be my friend Michael Jenkins called the Jenkins true trend line … I won’t go into too much detail but just know that using square roots from price and converting them into TIME produces excellent trend lines …
so, TLRY, might have a bottom in place here and I’ll be looking for 42.13 in the next week or so to give me a clue as to where we are … also, note the log trend line (dashed orange lines) held price all the way down, most recently, price broke above that trendline (bullish?) and did it all around the red trend line that came from the low of the IPO … hmmmmm 😉
This company is about to launch and AMAZING ‘treatment’ called Epidiolex for Lennox-Gastaut syndrome, a rare, severe and difficult to treat form of childhood onset epilepsy. These children and their families are suffering thru up to 200 seizures a day. By dropping a couple of the Epidiolex drops into their mouth they are seeing amazing results.
Guess what – thee amazing treatment is derived from Cannabis. Period.
I am looking for a risk controlled entry for a long term buy and hold. The company is doing amazing things spinning out over 150 different chemical properties of this amazing plant based medicine.
No, we don’t have a bunch of kids baked while watching their Ipads … this is a natural based science relief …
Right now, we’ve completed some pretty hefty patterns so I’m looking for any pullback to BUY. Would really like to get this back to the ‘old breakout level’ for a BUY … note the MONSTER GAP on a monthly.
Pharma can be very wild based on FDA approval and Adverse Events and blah blah … but believe this company is onto something and the future is very bright.