**This is my first professional TA, please do not take this as trading advice! Advice would be appreciated.**
This is looking at the 4h candles with a couple of important lines drawn. The yellow lines indicate major resistance and support lines defined over the history of HEXO stock trading. The bottom line is placed at 6.05 and we have the potential to revisit that line within the next month. We have been moving in a downward channel that is consolidating as a descending triangle, which is good because it means a reversal could potentially happen. I think if HEXO reverses the downward trend, we could see minor resistance around 6.55, and if we break that the next ceiling is at the upper yellow line of 7.28.
Looking at RSI, we are sitting at 34.8%, which is relatively low. If RSI hits around 50-55%, we can see a potential spike and retest of the 6.55 resistance line, but will most likely fall flat and return to the downward trend. However, I believe around June 10 we could see RSI become undersold and signal the beginning of a reversal if we are lucky. I'm keeping my eye on HEXO until Monday before making a move on it. In the short term it looks like RSI can't get above 55% without falling, which indicates low trading volume.
IV charts show volatility below the mean which is good in our case because it signals higher swings in the future. Currently we see IV sitting at 10.14 with the mean at 16.16. Last time we saw IV below the mean was when we moved from the 6.05 resistance line up to the ATH of 8.34.
Needless to say, HEXO is gearing up for a meteoric rise. If RSI is undersold, IV is below the mean, and we retest the 6.05 resistance line, I'm placing a long for 7.50 by 7/19 or something along those lines. In the very short term, I'm shorting them to 6.05. Thoughts?
This is looking at the 4h candles with a couple of important lines drawn. The yellow lines indicate major resistance and support lines defined over the history of HEXO stock trading. The bottom line is placed at 6.05 and we have the potential to revisit that line within the next month. We have been moving in a downward channel that is consolidating as a descending triangle, which is good because it means a reversal could potentially happen. I think if HEXO reverses the downward trend, we could see minor resistance around 6.55, and if we break that the next ceiling is at the upper yellow line of 7.28.
Looking at RSI, we are sitting at 34.8%, which is relatively low. If RSI hits around 50-55%, we can see a potential spike and retest of the 6.55 resistance line, but will most likely fall flat and return to the downward trend. However, I believe around June 10 we could see RSI become undersold and signal the beginning of a reversal if we are lucky. I'm keeping my eye on HEXO until Monday before making a move on it. In the short term it looks like RSI can't get above 55% without falling, which indicates low trading volume.
IV charts show volatility below the mean which is good in our case because it signals higher swings in the future. Currently we see IV sitting at 10.14 with the mean at 16.16. Last time we saw IV below the mean was when we moved from the 6.05 resistance line up to the ATH of 8.34.
Needless to say, HEXO is gearing up for a meteoric rise. If RSI is undersold, IV is below the mean, and we retest the 6.05 resistance line, I'm placing a long for 7.50 by 7/19 or something along those lines. In the very short term, I'm shorting them to 6.05. Thoughts?
-A