Why I Added More CGC Here

 

Today I picked up some more shares of CGC in anticipation of the entire cannabis sector moving higher in the weeks and months ahead. I’ve been watching this group closely, and today’s action in CGC stood out enough for me to add. When I look at the market through a relative strength lens, CGC was clearly the strongest cannabis stock on the day, showing relative strength from the open right into the close.

There are a few key things on this chart that really caught my attention. First, if you look at the daily chart, you’ll notice I’ve marked off a fairly reliable 37-day cycle that has been pulsating through this market for almost a year. What’s impressive is how accurate these cyclical lows have been. Time and again, price has been bottoming right around that window, and I pay close attention when cycles line up as cleanly as this. With today’s rally, I believe we have now confirmed the current cycle low, and it came right on schedule.

Volume also adds to the story. While it wasn’t explosive, we did see a modest increase in volume accompanying today’s green candle. That matters to me because it suggests participation is starting to expand. Even more important, today’s candle produced the largest close greater than-open relationship we’ve seen in the past 14 days. In other words, buyers stayed in control throughout the session and were willing to pay higher prices into the close. That’s often how early turns begin.

Another technical detail that shouldn’t be overlooked is the gap fill at 1.13 last week. Gaps tend to act like unfinished business, and seeing CGC come back and fill that gap before turning higher helps clean up the chart. 

When I put all of these factors together, relative strength versus the rest of the cannabis space, a cycle low arriving right on time, improving volume, a strong bullish candle, and a completed gap fill, it made sense for me to take action. This wasn’t about chasing strength; it was about positioning early as conditions start to improve. That combination is what led to my long entry in CGC, and now I’ll be watching closely to see if the broader cannabis sector and TLRY follow through.

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