OGI breaks back above 50-day moving average
OrganiGram Holdings Inc. (OGI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OGI ended the week 19.82% higher at 2.72 after surging $0.32 (13.33%) today on high volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on January 15th, OGI gained 8.28% on the following trading day. Trading up to $0.15 lower after the open, OrganiGram managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (OGI as at Feb 14, 2020):
Friday's trading range has been $0.29 (11.24%), that's far above the last trading month's daily average range of $0.19. 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 OGI.
One bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu.
The share managed to close back above the 50-day moving average at 2.52 for the first time since February 4th.
Although the market 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 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for OrganiGram. Out of 80 times, OGI closed lower 68.75% 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 66.25% with an average market move of 26.21%.