Aurora Cannabis Inc is one name that is actively traded by those that love this sector and I am going to provide an opportunity for a potential breakout entry.
Let me start by saying that everyone has been and will continue to state their case to buy this name. I understand that and that is what I am doing here. I am pretty sure myself along with hundreds of thousands are waiting for this Aurora Cannabis(OTC: ACBFF) (TSE: ACB) to recover. I believe that Aurora Cannabis and Canopy Growth will be the leaders in this industry when it is all said and done. However, that could be years away before we actually see the true yield potential these companies can offer. At this moment I am currently looking to actively trade both of these names for the near term.
Aurora had recently announced they have completed the acquisition of CanniMed Therapeutics (TSE: CMED) and CanniMed will operate as a wholly-owned subsidiary of Aurora. Upon the news of the acquisition of CanniMed, the Aurora stock actually moved higher on the news. The usual move is down since the takeover will affect the bottom line. It showed me that retail and institutional traders alike are bullish on the news. That leads me to the potential trade opportunity.
If you take a look at ACBFF on hourly chart, there has been a clear cut resistance level at one specific price. That price is $6.40 and it has been one hell of a ceiling. While some of the other names I have been playing are starting to see risk off trading, I am now seeing risk on in Aurora. If buyers are willing to buy into this name just prior to the massive short term ceiling this stock is facing, that buying pressure COULD lead to a very strong breakout. When I see stocks consolidate and coil like this stock has, history states that a large move could be made once it breaks free from the cycle pattern. So if ACBFF breaches through $6.40 and closes above that price level, the following bar must OPEN above that level. The following is the most important mechanic that needs to happen. It MUST reject at or near that price and we need the bid to lift. That means there is big money also watching the same mechanics and that is a GREAT thing to see. If the following chart pattern plays out, the buy is at $6.65 or lower and the stop would be at $5.93. If you followed my recent signals, the same behavior played out in those names. While CANN has fallen a bit flat on its face, MEDFF and ACAN had a nice percentage jump for me fairly quickly. I anticipate the same for ACBFF here IF we can get through that key resistance level.
Please keep in mind this signal is not valid as of yet. The stock MUST get above the $6.40 price for any consideration. You can try and front run but it is not something I would recommend. Keep the name ACBFF / ACB on your radar if it’s not already something you are watching closely.