HEXO Corp. (NYSE:HEXO) (TSE:HEXO) is a stock I am also watching closely. This stock had a recent IPO earlier this year. I see a great potential.
But before I get to it. let me tell you what is going on with CWBHF. They say a picture is better than a thousand words so here it is.
The short term volatility does not bother me at all since I will be holding this position for a longer amount of time.
So back to HEXO stock. Here it is.
Currently Trading at 7.48 on the New York Stock Exchange. This stock had an IPO pretty recently. This company is currently in the stage of increasing it’s production capacity. It is estimated that it will be able to produce 150,000 Kilograms per year with their newly acquired facility.
It also has a joint venture with Molson Coors Canada. (I would like to stress the word “Joint” in Joint Venture)
The pot industry is growing and this company also finished their brand new 1,000,000 Sq/Ft facility recently. This stock has good potentials.
By the way, this company only has $2.2 Billion Market Capitalization while other mainstream pot stocks such as Canopy Growth (NYSE:CGC) has $22 Billion market capitalization. Also when you look at the fundamentals, the company is currently making positive numbers on the revenue but minus in their net income. However, this stock has reached 52-week high of $8.40 per share recently on April 29, 2019. Now that is real “High.” I think it is due to the reasons I explained above.
I think this stock has an uptrend. I see lots of eyes going to this stock.
This is a very new stock. There wasn’t much historical data to use long period moving average indicators but I decided that 25-day simple moving average indicator can be good enough to show uptrend support levels. I also used the 5-day simple moving average to show past historical death crosses and golden crosses.
We can definitely see good uptrend.
Volatility is normal in trading. I can tell you that if there is another death cross of 5-day SMA breaking below the 25-day SMA. I think there is potential of it happening at around $7.20. After, there can be another golden cross and placing an order after the breakout of the 5-day SMA above the 25-day SMA is a good idea.
Also, look at the last death cross and golden cross from April 11th to April 22nd. Looking at that period, you can see the Doji candlestick pattern occuring on the April 16th. That was a reversal pattern and this pattern is strong on this stock.
Good buy would be waiting for a death cross and a doji. After seeing the doji candlestick formation, being ready to place a trade after seeing a golden cross would be a good strategy to take.
Watching the volume is a good choice when doing this strategy too. I think I will be watching this stock closely in the next couple weeks or so. I may buy them. We will see.