ACB Aurora Cannabis Long Setup
Updated
On the 4H chart ACB has dropped out of a head and shoulders pattern list winter with high
volume into a downtrend with lower volume now into support / demand as shown by the
Luxalgo indicator. The anchored VWAP is also trending downward with support at the minus 1
and minus 2 standard deviations. The volume profile shows the majority of the recent share
exchanges have been at the $0.65 per share area. If price rises above that POC line of the
profile, ACB will get the attention of new buyers while short sellers will begin to cover thus
causing buying pressure and momentum. I will buy a sizeable quantity for perhaps $1-2K shares
once price gets over that POC line. Prospective buyers will consider this to be a reversal
confirmation. I will be one of them. The first target is the volume void at $0.79 or about
25% with the other target being one standard deviation above VWAP at about $.90. Stop loss
will be set at $0.05 below the entry. For profit insurance I will hedge with a single put option
contract at a strike of $0.70 with a 90-120 DTE to diminish risk at a minimal cost.
volume into a downtrend with lower volume now into support / demand as shown by the
Luxalgo indicator. The anchored VWAP is also trending downward with support at the minus 1
and minus 2 standard deviations. The volume profile shows the majority of the recent share
exchanges have been at the $0.65 per share area. If price rises above that POC line of the
profile, ACB will get the attention of new buyers while short sellers will begin to cover thus
causing buying pressure and momentum. I will buy a sizeable quantity for perhaps $1-2K shares
once price gets over that POC line. Prospective buyers will consider this to be a reversal
confirmation. I will be one of them. The first target is the volume void at $0.79 or about
25% with the other target being one standard deviation above VWAP at about $.90. Stop loss
will be set at $0.05 below the entry. For profit insurance I will hedge with a single put option
contract at a strike of $0.70 with a 90-120 DTE to diminish risk at a minimal cost.
Trade active
The word on the street ( Wall) is that there is legislation in DC that if passed will remedy the issues the MJ industry has with banking liquidity business expansion loans et cetera that have hampered growth. If real, this is good news and once passed should mean a real catalyst for ACB and others.Trade active
ACB had a good week running 18% ; Adding to the position.
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