/biz/ - Business & Finance

TA on dude weed sector leader Canopy Growth. For the moment I consider Canopy to be the most important ticker to do analysis on as it has a history of setting the trend for everything else. HMMJ ETF chart is so similar to Canopy's it's silly. Canopy has a longer chart history than the ETF so I prefer to use Canopy as the benchmark. Anyway.

Burning questions: Should I sell at a loss tomorrow? Should I buy puts and/or go short? Is there any upside left?

General TA
>Canopy rarely dips below 200 day SMA (the brighter blue line in pic related)
>last time it broke that line was the late bear market of summer 2017 and even then it kinda hovered closely below it before breaking back above for the fall 2017 bull run
>daily RSI is 31, 4h is oversold at 25, 1h is extremely oversold at 19
>Stoch RSI has bottomed out
>200 day SMA level for tomorrow is $40.

Count on the 200 SMA to be launch pad for bounce play, however, there is no guarantee of holding that moving average after a bounce in to lower high in to crash. This is a swing trade opportunity only. If you're already long and deep in the hole, consider selling this bounce.

So, sell now? Only if the drop breaks 200 day SMA or on the oversold bounce. Same answer to opening short position or buying puts. Short term upside is the bounce in question. After that I can't possibly say other than people like weed and it'll keep selling.

Good luck. Don't kill yourselves.