Here's why Aurora Cannabis is worth watching

by Alistair Strang from Trends and Targets |

This cannabis stock has tumbled in 2019, so our chartist looks for a positive catalyst.

Aurora Cannabis Inc (NYSE:ACB) 

The inset on the chart below highlights something fascinating with recent price movements for Aurora Cannabis (NYSE:ACB). At time of writing, the share price is at $2.52 and the downtrend is at $2.40.

For the last couple of sessions, the price has mirrored the 'blue' downtrend and, despite the visuals, has closed above the immediate trend. This gives slight hope "something" is due to happen.

We'd regard movement now above $2.64 as capable of provoking an initial $2.88. If exceeded, secondary calculates at $3.27.

The important detail about the secondary is it risks being fairly game changing. In the event the price manages above $3.27 on an initial surge, ongoing recovery to $4.64 and beyond is expected.
 
All this hope is based on the price visually managing to avoid our big picture bottom target of $1.98. The share bounced, just above this target level and implies some hope for the future.

The detail of it actually trading above the immediate trend, again implies some hope.

Perhaps worth watching in the days ahead.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

get more news and expert articles direct to your inbox
Sign up for a free research account and get the latest news and discussion, and create your own Virtual Portfolio
sponsored articles from our partners