$WEED * CGC CANOPY GROWTH CORP. EWP TC FIB 3W TF ANALYSISAs of October 2024, NASDAQ:CGC TSX:WEED is positioned within a significant Elliott Wave cycle, suggesting a complex market environment.
Elliott Wave Analysis:
Wave Structure:
Wave 3 is currently in progress, with expectations to bottom around $2.46 to $2.06 CAD.
This wave represents a major impulsive move downward.
Wave 4 is anticipated to follow, retracing 38.2% to 50% of the decline from Wave 3, likely targeting the $6.50 to $9.00 CAD range. This wave is expected to exhibit a corrective structure, potentially forming a flat correction or triangle.
Wave 5 is projected to extend down to $0.25 to $0.04 CAD, signaling a final capitulation phase in this bearish cycle.
RSI Analysis:
1. Current RSI Level:
The RSI is currently at 32.77, approaching oversold territory. This indicates that Wave 3 may soon reach its conclusion.
2. Divergence Signals:
Bullish Divergence Potential: As we approach the expected bottom of Wave 3, monitor for signs of bullish divergence. If the price moves lower but the RSI shows a higher low, it could signal weakening downside momentum and a potential reversal.
3. Wave 4 Behavior:
During Wave 4, we expect RSI to recover towards the 50 level, reflecting the corrective bounce while targeting the $6.50 - $9.00 CAD range.
4. Wave 5 Confirmation:
In the subsequent decline of Wave 5, a final push to new lows accompanied by bullish divergence in the RSI would indicate a weakening downtrend, suggesting a possible bottoming pattern and future reversal.
