Aurora Cannabis Inc. - (ACB.TO) - February 3, 2021
Aurora Cannabis (ACB.TO) has benefitted lately from a rally in marijuana stocks on speculation that the new Democratic regime in the US could be friendlier to the pot sector. ACB.TO shares recently returned to the Green Favored Zone of the SIA S&P/TSX Composite Index report having climbed 175 spots in the last month. Yesterday, a 12.8% rally propelled the shares up 30 spots to 25th place.
A long-term downtrend in Aurora Cannabis (ACB.TO) shares bottomed out back in November when a rally up off of $5.00 on volume signaled a sea change in sentiment and completed a bullish Falling Wedge pattern. Following an initial recovery rebound, the shares have settled into a base building range between $10.00 and $17.00. In recent days the shares have been climbing up off of another higher low and are approaching $17.00 where a breakout would complete a bullish Ascending Triangle pattern and signal the start of a new upleg.
On a breakout, next potential resistance may appear near the $20.00 round number, then the $24.00 to $25.00 range where measured moves, a round number and previous resistance cluster. Initial support appears near $10.00.
A new recovery trend appears to be underway in Aurora Cannabis (ACB.TO) shares. Yesterday, the shares continued a series of bullish pattern breakouts with a Double Top building on a recent Spread Double Top.
Initial upside resistance tests on trend appear near $18.60, $19.35, and $22.25 based on vertical and horizontal counts, then the May 2020 high near $24.55. Initial support appears near $15.00 where a 3-box reversal, a round number, and a previous breakout point cluster.
With a perfect SMAX score of 10, ACB.TO is exhibiting near-term strength across the asset classes.
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