ACB Stock Price: Aurora Cannabis inc trades near oversold conditions ahead of earnings
|- Aurora Cannabis inc is trading near the all-time lows ahead of earnings.
- Fears that ACB would report a C$1 billion loss have been weighing on the stock.
- Wednesday's technical chart is pointing to near oversold conditions.
Aurora, the Edmonton-based Canadian cannabis company, has suffered turbulent times, mostly related to its financials. The moment of truth is awaiting – ACB is set to publish its results on Thursday.
The marijuana firm has recently ousted Terry Booth from his position as Chief Executive Officer and has also released warnings about impairments. These recent announcements have brought analysts to foresee a loss of 1C$ billion. Writedowns for goodwill and intangible property are behind a significant part of the projected losses.
Aurora – like other pot operations – enjoyed sky-high valuations when its home country Canada legalized weed in late 2018. And similar to its peers, it sued some of the excesses to acquire other companies – often at excessive prices.
As markets began looking for results and not only promises, the munch-up of rival firms came down to haunt these companies.
Nevertheless, while Aurora has squeezed its operations in South America and Denmark, it remains enthusiastic about the Canadian market. So far, that has failed to impress analysts covering Aurora.
Aurora Cannabis Stock Price
ACB is hovering above the $C2 price, close to the all-time low of $C1.96. The February 6 announcements have caused a sell-off, and now, tension amounts ahead of February 13's figures.
The Relative Strength Index on the four-hour chart is near 30 – indicating oversold conditions and implying that another fall may be followed by a substantial bounce.
A recovery would likely require Aurora Cannabis' stock price to top $2.50, which is the new gap line and also where the 50 Simple Moving Average hits the price. A more significant target is $3.05, which held ACB down twice in 2020.
Below $1.96, ACB would be in uncharted territory, with the round level of $1.50 providing potential support.
See Marijuana Stocks Price: MORE Act lifts prices from lows, financials still weigh
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