McGuireTO

Sector weakness holding back ACB bulls

TSX:ACB   AURORA CANNABIS INC
I'm still impressed by the ACB bulls with their bounce hitting the very top end of my target zone, rejecting from the .786 fib pull just below $13.00 resistance. Having lost the hourly higher low pattern this afternoon I'm confident that our new daily lower high has been set. I'm looking for an equilibrium to form, and anticipating a higher low relative to 11.21 and a daily tightening range as volume drops off. On the break of that range I'll be watching for a volume spike to confirm the momentum.

I love equilibrium patterns because they are one of the best patterns to play in my opinion, but one must keep in mind we're watching this range tighten as CGC / WEED is most likely going to have a daily bear break, putting downward pressure on the sector, including on ACB . Coca-Cola rumours are helping the bulls stay strong, but without an actual deal a rumour can only do so much in the face of a sector that's pulling back pretty significantly.

The range for me right now is 11.21 - 12.95. As long as CGC does not break below $48 (or WEED break below $62) I would definitely be interesting in bottomfishing a daily higher low on ACB above 11.21. If CGC breaks bear, I fully expect ACB to follow suit and lose our key 11.21 daily support level .
What do you think about the head and shoulders on the hourly chart?
+1 Reply
@jbarks, I've been talking about since last week lol i'm afraid that it flushes hard to 10 and then go start the bull run until legalization but i see it dropping to 11.21 like McGuire said. I thought it would bounce back but i'm going to sell in the morning and get in lower.
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jbarks Androtrade
@Androtrade, I am seeing the h&s taking shape and closing in on completion now, but I also see a rising wedge/asymmetrical triangle sorts ontop of that head and shoulders. I dont know what to think right now.
+1 Reply
@jbarks, I think we would've flushed hard by now but tmr we will be able to tell. Breaking 11.21 and going lower than 11.21 is a clear indicator that its H&S and its gonna go down hard.
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@McGuireTO @isnarain below 62 its at 60 this is bad!
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McGuireTO Androtrade
@Androtrade, I posted an update this evening
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