Long
CANOPY Growth Has Bottomed - Inverted Head & Shoulders!
Classic Inverted Head & Shoulders pattern is usually not just a bullish indicator but a sign for a trend reversal from bearish to bullish, and we just so happen to be coming off a recent low.
Not only did we bottom but we bottomed right at the .786 Fibonacci retracement level which just also happens to be right at the major support line. Great to see it respected at a healthy retracement level. Anyone who bought here has a good probability to see good profits.
Strategy:
I'm anticipating AT LEAST a move to the yellow circle which is also where the 200 MA is curving down to. This would mean roughly a 20% gain from here alone.
Now a few things can happen there. We can get rejected off the 200 MA and head back down which in that case I would look to buy once again somewhere along the support. Timing is everything as Canopy has plummeted to the down side most of the times of Earnings, so I would also look to reposition myself at that time as well. Looking at the chart I see that can easily happen after we make our test to the 200 MA.
On the flip side since the trend is looking upward at the moment we can easily have our 50MA cross above the 200MA resulting in a golden cross which then I would look for much more gains ahead.
Let me know what you think, I will update over time. Safe trading :)
Not only did we bottom but we bottomed right at the .786 Fibonacci retracement level which just also happens to be right at the major support line. Great to see it respected at a healthy retracement level. Anyone who bought here has a good probability to see good profits.
Strategy:
I'm anticipating AT LEAST a move to the yellow circle which is also where the 200 MA is curving down to. This would mean roughly a 20% gain from here alone.
Now a few things can happen there. We can get rejected off the 200 MA and head back down which in that case I would look to buy once again somewhere along the support. Timing is everything as Canopy has plummeted to the down side most of the times of Earnings, so I would also look to reposition myself at that time as well. Looking at the chart I see that can easily happen after we make our test to the 200 MA.
On the flip side since the trend is looking upward at the moment we can easily have our 50MA cross above the 200MA resulting in a golden cross which then I would look for much more gains ahead.
Let me know what you think, I will update over time. Safe trading :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.