Hello All.
Aurora Cannabis is starting to catch eyes of many. After a major year in 2017, ACB has had a rough last couple years with the price falling as much as -97%.
The charts are showing the blood is behind us and blue skies ahead for the cannabis industry in the upcoming years.
With the recent election of Joe Biden, the house and senate are now both democrat. They have the ability to easily push through any bill decriminalizing cannabis. With more decriminalizations throughout the USA. This is a positive push for cannabis stocks all around.
More legalizations, more users, more profits for companies like ACB and TLRY. In addition, the supply of cannabis products has been declining the last few years. Higher demand means higher supply is needed. If higher supply is needed, production is going to have to ramp up.
Now on to the technical side.
Just by looking at the last 2 years, we can see by using candlestick analysis, the price action has been curving around forming an obvious bottom.
In the recent months, ACB has came off its lows starting to revive back into its big volume/liquidity zone around $10-$20.
The price action has been forming a bullish pennant since September of 2020. That bullish pennant has broken out and confirmed that breakout (retest) in the recent weeks.
12$ is a big resistance zone for ACB. The price is currently flirting with that level as some positive news was released today. Aurora announced an agreement with Great North Distributors Inc. for Canadian retail sales execution. This creates less resistance for ACB to get their products to their consumers.
Using the Fixed Volume Range Profile tool, we can see that the last BIG volume resistance zone is around the $20 price mark. Once that is cleared ACB share price can see a similar movement as we saw in 2017.
This potential large price increase is due to the lack of volume & liquidity throughout the $22 to $50 price range. This also can be referred as a liquidity void.
Lastly, looking at the relative strength index (RSI), we can conclude a multi year down trend has been cleared and held in the recent months. It is now stretching past the 50 zone which is an easy indication of a bullish or bearish trend.
Thank you all !
Please share your thoughts below and like this post if it meets you well.
Aurora Cannabis is starting to catch eyes of many. After a major year in 2017, ACB has had a rough last couple years with the price falling as much as -97%.
The charts are showing the blood is behind us and blue skies ahead for the cannabis industry in the upcoming years.
With the recent election of Joe Biden, the house and senate are now both democrat. They have the ability to easily push through any bill decriminalizing cannabis. With more decriminalizations throughout the USA. This is a positive push for cannabis stocks all around.
More legalizations, more users, more profits for companies like ACB and TLRY. In addition, the supply of cannabis products has been declining the last few years. Higher demand means higher supply is needed. If higher supply is needed, production is going to have to ramp up.
Now on to the technical side.
Just by looking at the last 2 years, we can see by using candlestick analysis, the price action has been curving around forming an obvious bottom.
In the recent months, ACB has came off its lows starting to revive back into its big volume/liquidity zone around $10-$20.
The price action has been forming a bullish pennant since September of 2020. That bullish pennant has broken out and confirmed that breakout (retest) in the recent weeks.
12$ is a big resistance zone for ACB. The price is currently flirting with that level as some positive news was released today. Aurora announced an agreement with Great North Distributors Inc. for Canadian retail sales execution. This creates less resistance for ACB to get their products to their consumers.
Using the Fixed Volume Range Profile tool, we can see that the last BIG volume resistance zone is around the $20 price mark. Once that is cleared ACB share price can see a similar movement as we saw in 2017.
This potential large price increase is due to the lack of volume & liquidity throughout the $22 to $50 price range. This also can be referred as a liquidity void.
Lastly, looking at the relative strength index (RSI), we can conclude a multi year down trend has been cleared and held in the recent months. It is now stretching past the 50 zone which is an easy indication of a bullish or bearish trend.
Thank you all !
Please share your thoughts below and like this post if it meets you well.
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