Conclusion of today’s CGC (Canopy Growth Corporation) analysis:
Price closing below ~35.45 or 24.78 implies lower prices in Canopy stock price.
The purpose of today’s CGC stock price analysis is to inspect the different chart patterns that can be identified in CGC (Canopy Growth Corporation) and their implication(s). Use of a logarithmic scale of the Daily timeframe reveals two (2) chart patterns which will be further discussed below.
Previous analysis of Aurora Cannabis can be found here.
A rising wedge (diagonal) in CGC is established by drawing a line across price peaks and also price lows with the most recent pivot used occurring between December 21, 2018 and January 2, 2019.
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The ideal implication of the pattern is bearish, therefore indicating lower prices ahead. The second pattern up for consideration is the descending triangle chart pattern, which is also ideally bearish. The top boundary is established using price highs in October of 2018, February of 2019, and March 2019.
The lower boundary of the pattern is the horizontal line price level at 24.78.
It is important to note that the aforementioned price level also is the upper boundary of immediate support region anticipated in Canopy stock price upon a breakout below its wedge and 19.53 represents the lower support boundary.
A close below ~35.45 will confirm the wedge, whereas a close below 24.78 confirms the descending triangle.
The ideal scenario for both patterns as mentioned above is bearish, but that does not happen all the time. A great tip for using chart patterns is to carry out momentum studies, which can be highly invaluable in helping to guide trading decisions using chart patterns.
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