ACB had a huge increase in price together with a huge volume which is perfect setup for the trade. With the decrease volume after the peak has reached, it followed and retested 2 support lines it has created during the run. It is very interesting that the supports follow exactly FIB at 0.3 and 0.5 and make a retest for 0.2 level. By the movement of RSI going down after it almost hit overbought, there will be a bounce back to retest 0.3 and 0.5 FIB. I expect the 0.3 support to fail and retest 0.5 for a better entry. This trade can be activated by 3 conditions 1. Price retest .5 and hold the price 2. Hammer candle confirm for the up trend 3. RSI hit almost or near RSI 30 and make a little bounce back.
Love the breakdown! Will it get back to $12/.5 before CGC earnings? (May 29th)
Nick21Ho68
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@ProfitHarvest, Thanks for asking, my strategy is a little bit different. When I consider the pump made by news and buyers increased suddenly, I expect there will be another up and strong wave happening soon based on the RSI. When RSI makes a re-bounce around 30-40, it is clearly another wave for 70% happen. So, I expect RSI and price go down more before the bounce back. I will update when the time come.
Yea I play the earnings swings on these FOMO stocks :).
But yea you're right when RSI and MACD looking better, def time to load up.
ProfitHarvest
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@ProfitHarvest, Next buy range target probably $9-$12 based on VP. Don't think it'll get back to $5-$7 again but we'll see.
Nick21Ho68
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@ProfitHarvest, I usually focus on the gain% of the sudden wave to calculate the safe target for the next wave. Lets say a penny jump 100%. I expect the next time it jump lower than 100%, I actually don't worry much about the entry price. Lets see then
ProfitHarvest
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@Nick21Ho68, Yea I'm not smart enough to figure out fib trading lol, but love learning it.
I just balance Market Psychology, Fundamentals, Value and Volatility and throw up some pretty lines :).
Nick21Ho68
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@ProfitHarvest, Nice to hear it. I tried to learn many new methods too. But currently I only use only a few things I am very familiar with. Btw, market psycho is very sick for me lol
ProfitHarvest
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@Nick21Ho68, Nice, I live and breath FOMO :). That's where all the money is!
You really need to drop an SPX analysis on us, though.
Curious where you're at, not many other FOMO riders on here haha.
Nick21Ho68
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@ProfitHarvest, Absolutely, I cannot predict the first fomo wave yet, so I focus myself into the 2nd fomo wave. I will do SPX and SPY very soon
ProfitHarvest
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@Nick21Ho68, It's a fool's errand to predict the FOMO. You gotta pick the market and play the field.
FOMO Markets:
Cannabis
Coronavirus
Biotech
Renewable Energy
Space
If you're in all the main 5-10 at least or even a big pool of stocks at great value, it's not a matter of prediction, its just a waiting game.
Earnings are critical FOMO points. TSLA jumped from ~$250 to $950 in a couple weeks because of an earnings call. ACB just 3x'd after last earnings. Pay attention to earnings. TradingView makes it easy, just right on the chart.