ACB pushes through Wednesday's high
Aurora Cannabis Inc (ACB) Technical Analysis Report for Jan 10, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ACB finished Thursday at 5.94 surging $0.49 (8.99%) on high volume, significantly outperforming the S&P 500 (0.45%). This is the biggest single-day gain in over two months. Today's close at 5.94 marks the highest recorded closing price since December 12, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 5.54, the share confirmed its breakout through the prior session high after trading up to $0.46 above it intraday.
Daily Candlestick Chart (ACB as at Jan 10, 2019):
Thursday's trading range has been $0.67 (12.23%), that's far above the last trading month's daily average range of $0.40. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACB.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 50-day moving average at 5.93 for the first time since October 22, 2018. When this moving average was crossed above the last time on August 21, 2018, ACB actually lost -1.59% on the following trading day.
Aurora Cannabis shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying might move prices higher should the market test December's nearby high at 6.23.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Aurora Cannabis. Out of 109 times, ACB closed higher 57.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.72% with an average market move of 15.64%.