ACB Strong Buy Signal w/ High Upside Potential next 6 months
Updated
Aurora Cannabis (ACB) closed at $6.98 on Sept 11, meeting 2 previous support Lows.
Fibonacci ratios and Elliot Waves on this chart fit quite nicely.
Key points for a BULLish trend over the next 6 months:
Key Points for Risk-Reward Trades over the shorter-term:
Disclaimer: I am not a professional and I chart for my own education and learning. Please feel free to share your ideas and any resources you might recommend! Thank you! :)
Fibonacci ratios and Elliot Waves on this chart fit quite nicely.
Key points for a BULLish trend over the next 6 months:
- Key Support met again. History tells us a breakout may be on the horizon.
- Declining volume on the downward trade indicates a possibility for a breakout with high volume.
- RSI provides a strong oversold indicator.
- Consider the larger Elliot Wave Trend and see that we may be at the low of a Wave 2 on the larger cycle, indicating the best buying opportunity of all time, with low downside risk.
Key Points for Risk-Reward Trades over the shorter-term:
- Note the MACD cross-over, but also the unreliable nature of this indicator, especially considering prior history of "flip-flopping".
- Lots of opportunity to trade the up and down moves to $150 over the short term if there is a bull breakout.
- First target of $33.50 is based on the .786 retracement, and coincides with the impulse peak of wave 3. This will require a strong breakout with volume and likely be accompanied by high volatility.
Disclaimer: I am not a professional and I chart for my own education and learning. Please feel free to share your ideas and any resources you might recommend! Thank you! :)
Note
BEAR CASE since we should always consider both sides:Should we see a breakdown below the $5.00 mark we'd set a stop loss here. However, considering the fundamentals and profitability of the company, one would be better to hold some of the shares long term, pending the results of the upcoming U.S. Election and the consequence this would have on legalizing federally in the next 2 years.
Note
Update: Considering recent market performance we've taken our stop-loss in ACB. I would like to personally thank those that came by and commented. Specifically noting my incorrect ABCDE pattern, and highlighting the weak fundamental performance in ACB.
Alas, as any trader knows, one is better to protect your capital and look for better setups than to try catching a falling knife.
Meanwhile, some traders who were not in ACB already might find that this is the best buying opportunity in the stock's history. However capital might be better used elsewhere.
Our capital was moved in SPCE where it can do more for us in the short and longer term - you can check out the squeeze happening on my charted idea here:
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