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Maple Leaf Green World Inc. (TSXV:MGW)
Maple Leaf Green World Inc. is not a stock I keep too close of an eye on mostly because they have yet to show themselves to be a major player in Canada. Without being an LP, and with there being so many publicly traded LPs on the market these days, it is hard to keep track of them all. Having said that, a friend of mine asked me about them recently and I looked at their chart and couldn’t wait to write about it as it's basically a chart-nerd’s dream. There are so many “charting rules of thumb” that have played out here and so I figured I had to cover it in my Technical Analysis writeup.
Starting from the top, we have seen an RSI breakout of a downtrend. Next, we see the classic “head and shoulders top” where the stock broke to the downside in a significant way losing 50% from where I drew the “neckline”. In June, we had a huge sell off which left a wide gap to be filled. The general idea behind gaps is that they are often an example of something being “overblown” either to the upside or the downside and are usually corrected at some point in time in the future. I’ve