CGC Trade on Jan 18, 2019 09:57 from math_psycho: Tradervue User Stock Trades.

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math_psycho

 

TICKER: CGC
BIAS: SHORT
SUPP: 38, 39, 40, 42
RES: 43, 44, 45, 45.50
GAP%: -1.2
AVGV: 10.7
ATR: 1.5

NEWS: 4 days ago the company announced that it has been granted a licence to process and produce hemp in New York state. The company said it is planning to invest $100 million to $150 million in a New York base, capable of producing tons of hemp extract.

PLAYBOOK TRADE: OVEREXTENDED PULLBACK SHORT or OPEN DRIVE SHORT. Look for a test of resistance levels at $44.50, 45 early and be ready for a short. Support of $43-43.75 could provide good target given the ATR. A more aggressive target is $41.

NOTES: Yesterday the stock gapped down to support levels around $41 and then buyers took it for an OPEN DRIVE LONG back up to resistance levels around $43.80-44 followed by a rejection of the $44.50 level in the afternoon and a pullback to $42.80 with a close at $44.00. Overall the stock seams bullish as it closed in the top 50% of its range yesterday, but the gap up today could provide a good short into this capitulation on the longer term range. In the early morning session I watched the stock gap up and run to resistance $45-45.50 where the price quickly rejected. The stock pulled back down and seemed to find a temporary support around $44.30-44.50. I wanted to take the break down short of $44.30, but missed it and instead chased and put an offer in just below that of $44.08 with a stop just above $44.50. My plan was to short pullbacks and I should have waited for the pullback or let it go without me. In retrospect I should have taken the short around 11:30 after the pullback and when price crossed below VWAP again at around $44.50 with a stop above the local highs around $44.80... the target would have been support around $43-43.40.


Execution detail:

Date/time Symbol Side Price Position
2019-01-18 09:57:43 CGC sell $44.080 short
2019-01-18 10:32:49 CGC buy $44.540 0


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