Aurora Cannabis is one of the leaders in the new and emerging cannabis industry in Canada. They plan to stick around and I believe they will for a variety of reasons even though there is so much fear surrounding this industry at the moment. I'll elaborate further on this idea but for now let’s get to the TA.
I’ve recently called LONG on this, but it has since taken another small leg down.
Now the slope of downward price trajectory has slowed down and flattened, not completely but downward momentum has slowed down nonetheless, but trading volume has spiked. This speaks volumes to me, no pun intended. This shows me the possibility of a trend reversal occurring, and the bullish divergence on the RSI supports that idea as well.
Now can the stock dip further? Sure, but I’m setting a stop loss underneath the support, mainly because we are on a major key long-term support line. If we break below this, it’s going to be ugly in my opinion.
So why long? I view this as a low-risk high reward play for me considering what the technical indicators and current price level show me. I’m no fortune teller, I’m simply seeing a possible high-reward opportunity in front of me.
Don’t forget there are a whole lot of people who FOMO’d into this industry at all-time-high prices and rode it all the way down. These are the same people spreading fear about the cannabis industry but the truth is this is when smart money buys.
The Bottom Line:
9 months oversold on RSI, highest point reached being 60 and quickly dumped down back to oversold territory.
Downtrend momentum has slowed down with breakout in volume
Bullish divergence on RSI
Price has already declined 88% from it’s all-time high.
Buy the fear, sell the greed.
This is not trading advice, just my own opinion and ideas.
Excited to see how this plays out. Safe trading, cheers!
I’ve recently called LONG on this, but it has since taken another small leg down.
Now the slope of downward price trajectory has slowed down and flattened, not completely but downward momentum has slowed down nonetheless, but trading volume has spiked. This speaks volumes to me, no pun intended. This shows me the possibility of a trend reversal occurring, and the bullish divergence on the RSI supports that idea as well.
Now can the stock dip further? Sure, but I’m setting a stop loss underneath the support, mainly because we are on a major key long-term support line. If we break below this, it’s going to be ugly in my opinion.
So why long? I view this as a low-risk high reward play for me considering what the technical indicators and current price level show me. I’m no fortune teller, I’m simply seeing a possible high-reward opportunity in front of me.
Don’t forget there are a whole lot of people who FOMO’d into this industry at all-time-high prices and rode it all the way down. These are the same people spreading fear about the cannabis industry but the truth is this is when smart money buys.
The Bottom Line:
9 months oversold on RSI, highest point reached being 60 and quickly dumped down back to oversold territory.
Downtrend momentum has slowed down with breakout in volume
Bullish divergence on RSI
Price has already declined 88% from it’s all-time high.
Buy the fear, sell the greed.
This is not trading advice, just my own opinion and ideas.
Excited to see how this plays out. Safe trading, cheers!