It Looks Like Aurora Cannabis' Stock Is Reaching Crunch Time

Aurora Cannabis Inc ACB shares are trading higher Tuesday, although the company reported earnings with missed estimates. The company had sales of C$54.8 million, missing the analyst estimate of C$56.4 million.

Aurora Cannabis was up 6.66% at $6.81 at market close Tuesday.

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Aurora Cannabis Daily Chart Analysis

• The stock looks to be nearing a critical point in what technical traders call a descending triangle pattern.
• The $6.50 level has been able to hold as support multiple times in the past but recently fell below the level for a short period of time before bouncing back. This support level is pinching between a lower high resistance line. The stock could see a push in either direction in the next few days.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) saw a jump higher the past couple of days and now sits at 52. This indicates that there is now more buying pressure in the stock than there is selling pressure.

What’s Next For Aurora Cannabis?

Bullish traders would like to see the stock be able to cross back above the $6.50 level and be able to hold above the level for a time. If this happened the stock would break above the pattern resistance and possibly start making a move higher.

Bearish traders are hoping to see the stock drop below the $6.50 support and watch the bearish pattern play out the way its supposed to. Bears are then looking to see the stock hold the $6.50 level hold as resistance and for the stock to be unable to cross above it again. This could indicate that the stock is ready for a further downward push.

Photo by Kym MacKinnon on Unsplash