Hey Guys,
I had an amazing trade shortening HEXO from a few months ago and it's looking like it's time for me go long.
Here's a trade setup I'm keeping my eyes out for. All my confluence points are pointing toward a possible inverse head and shoulder formation and is almost text book material. If the pattern forms, I'll be looking to reenter the market for the upswing.
Confluence Points
1. RSI and MACD are showing signs of bullish divergences
2. Volume supports a possible H&S formation. I typically look for a weak trading volume in the formation of a head (relative to the left shoulder).
Here's what I'm paying attention to for the next 2-3 weeks for validation of the pattern. The right shoulder dip should form on light volume and a breakout of the neckline ($4.57) needs to be accompanied by high trade volume.
Please take my analysis with a grain of salt. Safe trading!
I had an amazing trade shortening HEXO from a few months ago and it's looking like it's time for me go long.
Here's a trade setup I'm keeping my eyes out for. All my confluence points are pointing toward a possible inverse head and shoulder formation and is almost text book material. If the pattern forms, I'll be looking to reenter the market for the upswing.
Confluence Points
1. RSI and MACD are showing signs of bullish divergences
2. Volume supports a possible H&S formation. I typically look for a weak trading volume in the formation of a head (relative to the left shoulder).
Here's what I'm paying attention to for the next 2-3 weeks for validation of the pattern. The right shoulder dip should form on light volume and a breakout of the neckline ($4.57) needs to be accompanied by high trade volume.
Please take my analysis with a grain of salt. Safe trading!