OGI surges, gaining $0.08 (7.41%) within a single day on high volume
OrganiGram Holdings Inc. (OGI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, OGI ended Wednesday at 1.16 surging $0.08 (7.41%) on high volume, significantly outperforming the S&P 500 (-0.46%). 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 June 8th, OGI gained 5.42% on the following trading day.
Daily Candlestick Chart (OGI as at Sep 16, 2020):
Wednesday's trading range has been $0.12 (11.11%), that's far above the last trading month's daily average range of $0.07. 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.
In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's high at 1.26, upside momentum might speed up should OrganiGram mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" 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 50.72% 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 62.32% with an average market move of -0.60%.