GWPH — initiating coverage 1/13/15 — long/short

GW Pharmaceuticals (GWPH) // biopharmaceutical // earnings due 2/4 pre-open

Having been bearish since November 20”s Ascending Triangle breakout failed from its unconfirmed 61.8% extension, finally fulfilling its potential to 52 had potential to change the playing field. Only printing that low overnight and immediately bouncing $30 hasn”t changed it back — but it can. That is, the ongoing decline can resume if support gives way. I wouldn”t short above support, because the alternative to resuming the decline could be the road to being acquired..

DATE	LAST	support	resistance	target
1/13	78.73	72.50	82.25	54.50 or 95.00

The table is updated as price action may require. A “long” should hold tests of support and break above resistance; a “short” should hold tests of resistance and break under support. Updated parameters are contained in a new table row.

Merely initiating coverage does NOT equate to being immediately actionable. Aggressive traders that act before a conservative closing confirmation (i.e. above resistance for longs, under support for shorts) might also consider exiting the position intraday.

Questions for me and discussion with other members on this coverage should be added to this Blog post”s comments section.