Inverted chart: Hexo and every other cannabis stock has been beaten up very badly since the February bounce. It is now common knowledge that legalization in the US is inevitable. While the US is making slow progress towards legalization I believe we have been presented with a great opportunity to buy into these companies at significant discounts. Hexo is one cannabis company that I think is due for a corrective bounce in the near term. Unfortunately I see conflicting signals as it pertains to Hexo at this time but after an 80% correction from the recent highs of February I like the risk to reward setup of averaging down into a swing position.
Technicals:
- CCI is signaling a buy on the daily chart (Bullish)
- Price action forming a rising wedge into resistance level (Bullish)
- Death cross on the daily (Bearish)
Recommended Entry: $1.50 - $1.75
Target 1: $3.00
Target 2: $4.00
Target 3: $5.00
This is not financial advice.
Technicals:
- CCI is signaling a buy on the daily chart (Bullish)
- Price action forming a rising wedge into resistance level (Bullish)
- Death cross on the daily (Bearish)
Recommended Entry: $1.50 - $1.75
Target 1: $3.00
Target 2: $4.00
Target 3: $5.00
This is not financial advice.