ACB surges 20.0% on high volume
Aurora Cannabis Inc (ACB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ACB finished Thursday at 0.90 surging $0.15 (20.0%) on high volume, significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on January 15th, ACB gained 4.88% on the following trading day. Closing above Wednesday's high at 0.81, Aurora Cannabis confirmed its breakout through the previous session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (ACB as at Mar 26, 2020):
Thursday's trading range has been $0.23 (29.87%), that's far above the last trading month's daily average range of $0.11. 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 slightly lower than usual for ACB.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 1.00 during the day, the market found resistance at the 20-day moving average at 0.93.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Aurora Cannabis. Out of 55 times, ACB closed higher 56.36% 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 47.27% with an average market move of 7.42%.