Why Aurora Cannabis is capable of a new high
Volatile for the past 18 months, technical analyst Alistair Strang plots a chart for this weed producer.
18th March 2019 16:25
by Alistair Strang from Trends and Targets
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Volatile for the past 18 months, technical analyst Alistair Strang plots a chart for this weed producer.
A strait-laced upbringing ensured a complete distrust of illegal drugs, including what was referred to as recreational products. Somehow, there was never a questioning moment despite a grandfather who ran a whisky distillery in the Scottish Highlands and family household where we could tell the difference between malts by our teens, simply by scent alone.
During 2018, an experience with medical cannabis proved an eye opener, a few drops of the stuff daily leading to a reduction and eventual removal of conventional painkillers which were managing a particularly nasty condition. Opting to stop taking the cannabis oil proved easy with no return to morphine based painkillers since.
This episode left more than a passing interest in the fortunes of commercial "weed" production and thus, Aurora Cannabis (NYSE:ACB) is deemed worthy of a glance.
The immediate situation is fairly straightforward as movement now above $9.70 should prove capable of some near-term growth to an initial $9.84. If bettered, secondary comes in at $11.65 initially.
We shall be particularly interested if, assuming it reaches and betters $11.65, the share price is gapped up above $12.30 sometime in the future, this being the very maximum we can presently calculate.
In the event of this, it shall be taken as a cue the market intends a share price considerably in excess of our $11.65, thus making it a long-term hold.
For now though, we suspect the price will experience some initial hesitation at the $11.65 level, if the scenario pans out as expected.
Perhaps worth keeping an eye on. It requires below $7.15 to snuff out optimism.
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.
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