On Monday, October 30th 2017, $TWMJF ($WEED on the TSX) Gapped up from $10 a share to $11.50 a share and quickly rose to $12. After a morning dip of as low as $11.15 $TWMJF closed the day at $11.86.
Only after it bounced off intraday support did I decide I wanted to buy some, I was looking for a price of $11.10
Monday, October 30th 2017
It began on Monday morning with a news catalyst, Constellation Brands confirms stake in Canopy Growth, Constellation Brands the US distributor of Corona made a $245 Million CND investment in Canopy Growth Corp for 9.9% stake in the company.
By gapping up to $11.50 TWMJF was able to breaks through 1 year resistance. Afterwards, the 1 year resistance became the intra lower support level.
The last decent dip buy opportunity was at 11:30am EST when TWMJF tested support at $11.17.
Tuesday, October 31st 2017
TWMJF opened with a quick morning spike followed by an equally as quick dip and then climbed as high as $12.75, right now it’s back down to $12.33.
My biggest takeaway is that news catalysts are everything. When the catalyst is real news that is actually positive it’s even more impactful.
While I wouldn’t want to chase TWMJF in the first couple minutes after the market opened and TWMJF rose has high as $12.19 there were two good dip buying opportunities where the price dropped near the 52 week resistance level and bounced back up.
Positive news and a strong finish can give a stock legs the next day as was demonstrated by TWMJF climbing as high as $12.75 in the first hour and a half after the market opened.