OGI pushes through Wednesday's high
OrganiGram Holdings Inc. (OGI) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
OGI ended Thursday at 2.40 surging $0.19 (8.6%), notably outperforming the S&P 500 (-0.16%). This is the biggest single-day gain in over four weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 2.36, the market confirmed its breakout through the prior session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (OGI as at Feb 13, 2020):
Thursday's trading range has been $0.22 (10.05%), that's slightly 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 way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OGI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Despite a weak opening OrganiGram managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on October 20, 2014, OGI gained 140.30% on the following trading day.
Buyers managed to take out the key technical resistance level at 2.27 (now S1), which is likely to act as support going forward. After having been unable to move lower than 2.20 in the prior session, the stock found buyers again around the same price level today at 2.18.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for OrganiGram. Out of 31 times, OGI closed lower 61.29% 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 two trading days, showing a win rate of 77.42% with an average market move of 7.65%.