HEXO Bull Profit Taking

HEXO reversed down from a nested parabolic wedge, larger wedge and large low 2. The follow through selling has been good. The bears will likely get a second leg down before taking profits and before the bulls will look to buy again. This market is still in a bull trend, but wedges often lead to two legs sideways to down, convert the market into a trading range (atleast temporarily), and sometimes reverse the market into a bear trend. The bulls will look to form a double bottom or higher low around the $5 low. They will need to keep the bull breakout gap open in order to defend the strength of the bull trend. Otherwise prices are more likely to convert into a bull flag trading range.

If you found this helpful, please like and share! Feel free to comment or ask questions.