ACB edges higher $0.01 (0.68%) after posting weak earnings
Aurora Cannabis Inc (ACB) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
ACB ended Thursday at 1.47 edging higher $0.01 (0.68%) on high volume, outperforming the S&P 500 (-0.16%) following today's earnings report. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ACB as at Feb 13, 2020):
ACB reported earnings of $-0.18 per share today. With analysts having expected an EPS of $-0.06, Aurora Cannabis Inc missed market expectations by -200.0%. The company's last earnings report was released on Nov. 14, 2019, when Aurora Cannabis Inc reported earnings of $0.01 per share topping market expectations by 133.3%.
Thursday's trading range has been $0.13 (9.09%), that's slightly below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ACB.
One bearish candlestick pattern matches today's price action, the In-Neck Pattern.
Unable to break through the key technical resistance level at 1.50 (R1), the stock closed below it after spiking up to 1.56 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on February 6th, ACB lost -15.00% on the following trading day. After having been unable to move lower than 1.44 in the previous session, Aurora Cannabis found buyers again around the same price level today at 1.43.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 1.90.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Aurora Cannabis. Out of 1 times, ACB closed higher 100.00% of the time on the next trading day after the market condition occurred.