Over the last year, I have been introduced to Elliott Wave Theory and have learned to use it in trading cryptos. More recently, I have looked into the more specific "Fibonacci Pinball" method described by Avi Gilburt's group. I have never subscribed to any of their services, but they have an Education section of their website, which includes an introduction to their Fibonacci Pinball method as well as a more detailed presentation on the topic.
I have decided to practice their method and use this blog to document my analysis for my own purposes.
I am not a financial advisor. Do not consider this to be financial advice. I am posting it here for my own practice and future review only.
Today I am taking a look at The Hydropothecary (HEXO) on the TSX, as legal recreational cannabis comes to Canada. Cornerstone Investments on Seeking Alpha has taken a deep dive on HEXO and considers it one of the top plays in the cannabis market.
Looking at the chart, HEXO has completed a five wave impulse, with waves (iii) to (v) forming a rising wedge. Price broke down out of the wedge to begin the requisite correction. I had considered buying at about $4 to catch what looked to be a sizeable (B) wave bounce, but I was too late. The (B) wave looks to be in with the announcement that HEXO is partnering with Molson Coors to produce non-alcoholic cannabis infused beverages.
It now looks like HEXO should pullback at least to $3.63, with a decent chance at $3.05.
This looks like an excellent opportunity as a longer range view suggests that $14 could be in the cards for circled wave v, based on a pull back to $3.63.
Please note that I am projecting price only, not time.
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