EDSA Scanner Alert: 40% Biotech Runner Hits Perfect Fib Setup

The pre-market scanner lit up this morning, and EDSA was flashing all the right signals. Here's what caught my attention: a biotech with an FDA catalyst, explosive volume, and what turned out to be a textbook Fibonacci setup that's still playing out.

Let me break down what the scanner showed me. Edesa Biotech opened at $1.57 and rocketed to a high of $2.58 - that's a 64% intraday move. The stock is currently sitting at $2.20, up 40.13% on the day with volume of 43.2 million shares. For context, this company has a float of just 8.3 million shares, so we're seeing massive volume relative to the available supply. The catalyst? This is an FDA play in the pharmaceutical space, specifically focused on inflammatory and immune-related diseases.

Now here's where it gets interesting from a technical perspective. Using the day's range from the low of $1.51 to the high of $2.58, I'm seeing clean Fibonacci levels that are acting as perfect support and resistance zones. The current price of $2.20 is sitting right at the 61.8% Fibonacci retracement level at $2.17 - this is often called the 'golden ratio' and it's holding as support so far.

Here's my Fibonacci trade plan breakdown: The 38.2% retracement level sits at $1.92, and that's my line in the sand. Below that level, I'm out - no questions asked. That gives us a risk of $0.28 per share from the current price. For targets, I'm looking at a retest of today's high at $2.58 as the first target. But the real opportunity lies in the Fibonacci extensions. The 127.2% extension projects to $2.87, and the 161.8% extension reaches $3.24. That's a potential risk-reward ratio of 1:2.4 to the second target - exactly the kind of setup that gets my attention.

What makes this setup even more compelling is the volume confirmation. When you see 43.2 million shares traded on a stock with only 8.3 million in the float, that tells you institutions are paying attention. Volume confirms everything in my book, and this volume surge validates the breakout move we're seeing.

This is a perfect example of why I always say 'let the scanner do the work.' The combination of catalyst, volume, and technical setup all aligned this morning. The Fibonacci levels are giving us clear risk parameters and profit targets. Whether you're new to trading or experienced, setups like this demonstrate how technical analysis can provide structure to what might otherwise feel like chaos.

The key lesson here? Trade what you see, not what you think. The setup doesn't lie, and when the Fibonacci levels align with fundamental catalysts and volume confirmation, that's when opportunities present themselves. Set up your scanner and find your own.