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on BREAKOUT COINS…
2 years ago
At long last, the Bulls have come back into the Cannabis Arena and have challenged the Bears to a bit of a fight. This week’s price action, however should be kept in some context, before investors start chasing fast gains. The stock of Aurora Cannabis Inc. (NYSE: ACB) has potential upside of approximately +470% to get back to its 2018 peaks, thus we should consider why would we be buying this rally. This may be no more that a dead cat bounce and the volume profile would consider it is just that; rather than a short squeeze.
Other marijuana stocks, such as Tilray and Cronos. have on the other hand, seen much larger volume traded: as bullish sentiment had also swayed towards the larger kingpins of the industry. Both Tilray and Canopy Growth have made significant appointments to their management and board, while also reassuring investors with some positive commentary about profitability and the future growth prospects for their companies.
ACB is the opposite situation: Management is in disarray, finances are extremely questionable, and a seemingly ever intense social media hate campaign that continues to scare off the retail-investor community; all while that communications from the company are relatively non-existent. Despite all that, ACB has a loyal band of core investors; who are hoping for the next Tesla like slaying of the bears.
Short term – $2.71 – Daily resistance.
Medium term – $3.54 – Dropping 100-day moving average & horizontal daily price resistance.
Longer term – $4.63 – To Weekly horizontal price resistance level.
Short term above the 34 day moving average which is currently holding as resistance with next target the 50 day Moving Average.