Aurora Cannabis, a Canada-based cannabis producer company surged more than 17% in a single day after the Coca-Cola is in talks with deal with Aurora to develop weed-infused beverages. Here is the Aurora Cannabis Stock Technical Analysis.
18 September, AtoZ Markets – Yesterday, Aurora Cannabis stock closed at 9.98 up +1.44 (+16.86%) with the high volume of 63,325,577 after the deal with Cola-Cola. A partnership between the two companies would likely develop health-focused beverages aimed at easing inflammation, pain and cramping. Moreover, the other companies dealing in the same market, including Tilray and Scotts Miracle-Gro, also surged on the week's first day of trading. Will the stock price trend higher after the deal with the giant FMCG company?
Aurora Cannabis Stock Technical Analysis
After the 17% surge in Aurora Cannabis stock in a single day, a Doji start bearish candlestick pattern has emerged in 1D time-frame with high reliability. It means during an uptrend, the market builds strength on a long white candlestick and gaps up on the second candlestick. However, the second candlestick trades within a small range and closes at or near its open. This scenario generally shows erosion of confidence in the current trend. Confirmation of a trend reversal would be a lower open on the next candle.
Also, according to the STOCHRSI(14) AND William %R technical indicator the stock moved to the overbought zone. The ATR(14) indicator also signals that the stock gets highly volatile to trade for now. Thus, a bit correction from this point can be seen when the market will open as the investors book their profits.
I think there are three key fixings to progress for pot cultivators. Initially, they should have a noteworthy production limit. Second, they ought to be all around arranged for the Canadian recreational weed market planned to open in October. Also, third, they ought to have solid universal tasks to exploit the quickly growing worldwide medicinal cannabis to advertise. Aurora Cannabis marks off every one of the three boxes.
It's difficult to stay aware of Aurora's production limit in light of the fact that the organization is developing so rapidly through acquisitions. Last time, Aurora was on track to have the capacity to deliver in excess of 570,000 Kgs of cannabis for every year before the end of 2019.
But for the long-term investment, I'm highly optimistic for the stock. The long-term 100 SMA is still way above the 200 SMA level which means the path of least resistance in the upside. The stock is trading below the first resistance level (R1 CAD 10.35) and if the price moves above this level, the stock might show a bullish pull towards CAD 14- CAD 16 in short-term.
Aurora Cannabis Stock Weekly Pivot Points
The stock has a significant weekly support near CAD 7.60 level and resistance near CAD 9.51 level.
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