ACB surges 6.42% on high volume
Aurora Cannabis Inc (ACB) Technical Analysis Report for Nov 08, 2019 | by Techniquant Editorial Team
ACB finished the week 6.42% higher at 3.81 after surging $0.23 (6.42%) today on high volume, significantly outperforming the S&P 500 (0.26%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on October 3rd, ACB actually lost -2.44% on the following trading day. Today's close at 3.81 marks the highest recorded closing price since October 17th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ACB as at Nov 08, 2019):
Friday's trading range has been $0.26 (7.18%), that's above the last trading month's daily average range of $0.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ACB.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 3.67. After having been unable to move lower than 3.58 in the prior session, the market found buyers again around the same price level today at 3.56.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 3.92 where further buy stops might get activated. With prices trading close to this year's low at 3.40, downside momentum could speed up should Aurora Cannabis break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Aurora Cannabis. Out of 50 times, ACB closed higher 52.00% 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 50.00% with an average market move of 11.11%.