Updated
ACB FIB Retracement Suggestion
In my humble opinion, the RSI is the first indicator that the 3 month old up trend has been broken, or is about to break. RSI fell below its trend line, tried to move up, but bounced.
1) ACB is currently in limbo, with no clear direction given. Buying and selling are in perfect equilibrium, but volume is leaving, certain to give bears control at some point.
2) Still no actual news, only expectations and promises, followed by news of more stock diluting. Without news, there is nothing to send ACB a leg up. The broader cannabis market seems to move toward consolidation, after three months upward movement. This trend shift will certainly influence ACB's price, in line with its peers.
I am not an ACB bear, I am a realist, and long term bullish. Using ordinary FIB mathematics helps find the levels to look for. I find math fascinating. Not only does math give us $7.44 as a target of the current retracement, it is also the FIB0.5 of the 3 month long move upward.
Logic projects this target, lets see what reality makes of it.
1) ACB is currently in limbo, with no clear direction given. Buying and selling are in perfect equilibrium, but volume is leaving, certain to give bears control at some point.
2) Still no actual news, only expectations and promises, followed by news of more stock diluting. Without news, there is nothing to send ACB a leg up. The broader cannabis market seems to move toward consolidation, after three months upward movement. This trend shift will certainly influence ACB's price, in line with its peers.
I am not an ACB bear, I am a realist, and long term bullish. Using ordinary FIB mathematics helps find the levels to look for. I find math fascinating. Not only does math give us $7.44 as a target of the current retracement, it is also the FIB0.5 of the 3 month long move upward.
Logic projects this target, lets see what reality makes of it.
Note
It is my expectation that ACB will continue to wave down towards $7.44 until the incentive is given for a new leg up. The logic is sound, the foundation of this theory.Here the broader FIB levels:
Note
And here are the similarities with last years trend reversal. First there was a three month long uptrend. Then the RSI gave way first, along with a two week period of sideways trading, stuck between FIB0.5 and FIB0.618 (just like this time).Finally a leg down, bounced on the indicated FIB levels, reaching extension targets each time.
Note
Correction, ACB is currently bouncing between FIB0.618 and FIB0.786. That is another level down from 0.5 and 0.618.Note
Finally today, some news. Aurora Cannabis. Lets hope this enough for a bounce...has been selected by the German Bundesinstitut für Arzneimittel und Medizinprodukte BfArM as one of three winners in the public tender to cultivate and distribute medical cannabis in Germany.
The contract will be formalized on April 17.
The Company was awarded the maximum number of 5 of the 13 lots over a period of four years with a minimum total supply of 4000 kg.
The cannabis produced will be sold to the German government and supplied to wholesalers for distribution to pharmacies.
Note
Yesterday's excellent news did not amount to any increased volume. We have another Doji on the daily, so our equilibrium is continued. Trading down or sideways, next week ACB will meet that channel bottom, and direction will be forced: buy or break.
🅱🄰🆁🅺🆆🄾🆁🆃🅷
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🅱🄰🆁🅺🆆🄾🆁🆃🅷
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.