OGI closes higher for the 2nd day in a row
OrganiGram Holdings Inc. (OGI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OGI ended the week 13.79% higher at 1.65 after gaining $0.07 (4.43%) today on high volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 1.65 marks the highest recorded closing price since April 27th. Trading up to $0.09 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, OGI gained 15.08% on the following trading day. Closing above Thursday's high at 1.64, the share confirmed its breakout through the prior session high after trading up to $0.05 above it intraday.
Daily Candlestick Chart (OGI as at May 22, 2020):
Friday's trading range has been $0.18 (11.25%), that's far above the last trading month's daily average range of $0.12. 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 higher than usual for OGI. Prices continued to consolidate within a tight trading range between 1.48 and 1.70 where it has been caught now for the whole last trading week.
The stock managed to close above the 50-day moving average at 1.61 for the first time since February 21st. After having been unable to move lower than 1.50 in the previous session, OrganiGram found buyers again around the same price level today at 1.51.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 1.70 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for OrganiGram. Out of 39 times, OGI closed lower 53.85% 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 four trading days, showing a win rate of 58.97% with an average market move of -1.77%.