OGI breaks above 20-day moving average for the first time since February 21st
OrganiGram Holdings Inc. (OGI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, OGI ended Thursday at 1.95 gaining $0.18 (10.17%) on high volume, significantly outperforming the S&P 500 (6.24%).
Daily Candlestick Chart (OGI as at Mar 26, 2020):
Thursday's trading range has been $0.29 (15.93%), that's far above the last trading month's daily average range of $0.20. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OGI.
The stock managed to close above the 20-day moving average at 1.80 for the first time since February 21st. When this moving average was crossed above the last time on February 14th, OGI actually lost -1.47% on the following trading day.
Though the share 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 three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for OrganiGram. Out of 69 times, OGI closed lower 59.42% 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 71.01% with an average market move of -8.91%.