OGI finds buyers at key support level
OrganiGram Holdings Inc. (OGI) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, OGI finished the week -8.91% lower at 4.50 after losing $0.04 (-0.88%) today, underperforming the S&P 500 (-0.07%). Closing below Thursday's low at 4.53, the market confirmed its breakout through the prior session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (OGI as at Sep 13, 2019):
Friday's trading range has been $0.17 (3.73%), that's far below the last trading month's daily average range of $0.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OGI.
After trading down to 4.43 earlier during the day, the share bounced off the key technical support level at 4.44 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 22nd, OGI actually lost -3.19% on the following trading day.
OrganiGram shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 3.97, downside momentum might accelerate should the stock break out to new lows for the year. As prices are trading close to September's low at 4.11, downside momentum could speed up should OGI mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for OrganiGram. Out of 16 times, OGI closed lower 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.50% with an average market move of 36.67%.