Looking for an opportunity to grow your account? Check out Canopy Growth Corp ($CGC). (September 04, 2018)
CGC
Let’s look at Canopy Growth ( NYSE: CGC ) here. Just to give you full disclosure, I am long some of this stock; it is actually the first time, to my recollection anyway, that I have traded pot stock. The reason I haven’t in the past is just simply because it is an industry and a group of stocks that I really honestly don’t know anything about. From a recreational standpoint it’s not what I do.
I kind of missed the industry and all that so I try to stay away from stocks where I really don’t understand things; because I feel like they’re not a whole lot different. If you don’t understand them then you might as well go answer that email from the prince in Zimbabwe who is exiled or whatever and needs your help to send you 15 million dollars. You are just not going to make money, at least for me. But when I see a pattern and when I see these various stocks that are kind of moving in a group, hey, I like to make money just like the next guy.
That took me to this: I had been watching this stock back here. I think I first starting looking at it here and that is when I said, “It is not my deal, I really can’t make that trade.” Even though I look at this and it is a classic Fitzpatrick volatility squeeze, breakout from the squeeze, there’s Phase 1, there’s Phase 2, now we are looking for the start of Phase 3, sitting here and now we have got it. That is why I am talking about this today.
This is what I would call a classic volatility squeeze pattern; where volatility got really tight. The stock traded in a tight range, Boom! A big explosive move on massive volume, you can see the volume here; a big, big character change here. An explosive move on massive volume and then at some point the momentum basically drops off. It is like, okay, the buying is done; now the question is how much selling are we going to see? Are we going to see the stock fall all the way down here? Or are we going to see the stock only fall a little bit before we see buyers come back in? Well, I think that question got answered today.
I am looking at this stock right now and I think that it is kind of one of those deals where the flag flies at half-mast. This is not like a flagpole, a parabolic move but I look at it this way: This is about a 20 point move from the top here, from this breakout level up to the top, about a 20 point move. We will use $50.00 as a reference; we will add 20 points to $50.00 and I am looking at $70.00 now as my profit target. So I am looking at $70.00 as a target for this stock. If it gets up to here that is when I am going to be selling. I am going to keep a stop right around here; not a super tight stop but you have got to give it enough room to wiggle; because again, the stocks are kind of all over the place. Look at Tilray ( NASDAQ: TLRY ), it’s really, really volatile. But this one I think works; I do think it gets to $70.00 it is just trading on momentum. Look at the accumulation.
So I hope this works for you; I hope that you make this trade and that it does go to $70.00 because then you are going to be really happy and you are going to be a little profitable and that is why I am here.
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