Take a look at this bearish shark that formed. I think CGC will test 42.75 very soon as it completes the shark pattern. The question is whether it bounces from there and turns into a bullish 5-0, or keeps moving back down back towards the .886 and 40-ish levels again.
I personally think the deal to secure future distribution in the US gives the stock enough positive momentum to at least consolidate in this higher zone. I believe the weekly ichi cloud will continue to provide support (the large green blob I've drawn) and it'll consolidate in the blue triangle for the near term. The only thing that worries me about this theory is the massive distribution from yesterday's candle.
IMO buy the dip as it closes the gap from yesterday and retests the recent downward channel. 42.75 should be your ride or die line.
I personally think the deal to secure future distribution in the US gives the stock enough positive momentum to at least consolidate in this higher zone. I believe the weekly ichi cloud will continue to provide support (the large green blob I've drawn) and it'll consolidate in the blue triangle for the near term. The only thing that worries me about this theory is the massive distribution from yesterday's candle.
IMO buy the dip as it closes the gap from yesterday and retests the recent downward channel. 42.75 should be your ride or die line.
