RE:Technical Indicators:Why we're on the precipice of running You sure know how to get a CGC long excited, by the jaysus...
starsearcher40 wrote: I can't say enough how much I am a fan of technical indicators, and technical analysis in general. The really nice thing is the indicators and chart reads work in any timeframe, from the 3 minute charts right up to multi month/year charts. And within those reads, the most POWERFUL moves happen when charts in several timeframes line up with each other.
For example, you might have someone refering to the yearly chart, and see a chart pattern that is tightening and/or signals a breakout. But within that year pattern is the month pattern. Think of this as zooming in. Now if you see the same pattern on the month charts, you have a closer sense of the timing of the break. Focus in further to the weekly chart, and you've zoomed in again. And then the daily chart, and then the hourly, and then the 45,30,15,5 minute chart. You get the picture. When you have ALL of these charts singnaling the same thing, that's when you get the REALLY powerful move upwards, because everyone's buy signal is triggered essentially simultaneously.
So what charts are the drivers? Essentially, the broader term timeframes ultimately have the greatest dictating power. And this is where it gets VERY interesting for WEED. Try doing the following:
1) Pull up the 1 year chart. Now lets ingore the anomolies created by the massive short squeeze, and then the wickedly hard drop right after. Their just noise to the main chart.
2) Now draw a horizontal line right across the $12.00 level. As you can see, the stock has the $12.00 level act as both support and resistance a number of times.
3) So lets consider the first overall run (on the yearly chart) from the $4.00 level up to the $12.00 level. This happened in the August to -mid November timeframe, a period of 3.5 months.
4) So how do we consider the period form mid November until now? In terms of the yearly chart, this has been a consolidation phase, between approximately $10.00 and $12.00. This phase is now showing very strong signs of ending, with a powerful upside break showing as imminement.
5) Now take a look (still on the yearly chart at the bars for the past week. What you have there is a very high flag, with a strong tightening to the $12.00 level. Today, it actually stayed ABOVE that level, but still hasn't broken free....yet.
6) If you have the ability, start going in to closer time frames. Monthly. Weekly, Daily, Intraday. You'll see the same patterns forming.
As I said before, it's the convergence of all these patterns in multiple timeframes firing off in unison that makes for the biggest moves. Going back to the yearly timeframe chart, with the $10-12 representing consolidation AND also the midway point of the overall run, by rights, we should see the next large scale run up to the $20.00 level ($4-$12 is an $8.00 move. $12 plus $8 takes it to $20.00)
Now the interesting thing here is the timeframe. Do we wait another 3.5 months for this 2nd phase of the large scale run? Personally, I don't think so. Hell, even if it was, I still wouldn't complain. I'm just saying I don't think it will take that long...at all. There are just too many upcoming positive catalysts that WEREN'T there in the first run, and that are imminently there now.
a) Upcoming quarterly. I've actually upgraded my thoughts here. This report will incorporate the Snoop branding launch, which I think was very effective, and pulled a LOT of customers over to Canopy.
b) Upcoming legislation.
c) Germany. I think this is going to be fast-tracked as much as possible, and we're going to hear announcements soon on this. The market is TOO huge, and Bruce has an active appetite for being first to market/production. He's well on his way there already.
d) Next quarter I expect to be a monster quarter, incorporating the massive harvest from the Farm. We're seeing a huge supply of products there in the store now. Supply equals sales, and also equals increase in customers as others come to Canopy frustrated by lack of supply by other LP.s
There's other reasons too, and they've been well discussed here. Again, you get the picture. My point is, the next stage of the updraft I think will be significantly more powerful than the 1st stage.
And my biggest point here is this: We are right on the precipice of this MAJOR next move up. If picture this will start tomorrow. I thought today actually, but one more day winding tighter is fine. The real updraft will be next week.
This has been a very surface-level view of some of the t.a. involved, and it's why I don't mind buying more at all right now. Enjoy the run folks. This should be VERY lucrative.