Continuing along the meme stock theme, next up is the Farmmi company. This company is little known until recently, when massive volume started to take place. It caught the eye of the reddit community and another meme stock was born.
Lets take a look at what the company does:
“Farmmi is a company that processes and sells agricultural products in China and abroad; it grows and markets shiitake and wood ear mushrooms and other edible fungi products, including bamboo fungi, chestnut mushroom, trumpet royale, hen of the woods, lawyer’s wig, and lion’s mane mushroom. It also operates Farmmi Jicai, an online store that sells edible fungi products under the Forasen and Farmmi Liangpin brands. In addition, the company exports dried whole and sliced shiitake mushrooms, and dried black fungus to Israel. Through its distributors, it offers its products to restaurants, cafeterias, and local specialty stores.”
Lets dig into the charts of this mushroom company.
Farmmi Elliottwave View:
Farmmi Shorter cycles since September 24, 2021 lows. It is favoured that this stock has advanced from September 2021 low of 0.20 to a peak of 0.53 set on Sep 30/2021 in a 5 waves structure. After that peak, pulled back to correct that cycle, in Red II. The price action today suggests that the correction in Red II is set, and the next leg higher is underway.
Red II low is set at 0.28, as long as prices remain above there, this view remains intact. If prices violate that low, Red II would be favoured still underway. In that instance, the next area below where another bounce can happen would be the 0.24 level.
On the upside, the area for where Red III can peak is the 0.61 to 0.82 area. In conclusion, as long as prices remain above the 0.24 low, further extension higher is favoured to take place to the 0.61 to 0.82 area where a larger pullback may materialize.