Aurora Stock Price: ACB attracting bargain-seekers amid improving technical conditions
|- Aurora Cannabis has bounced off the lows and eyes higher levels.
- Bargain-seekers have stepped in after a raft of adverse news hit ACB.
- Technical conditions have improved for the marijuana stock.
Aurora Cannabis Incorporated has been enjoying the calm after the storm. After several horrible weeks, the stock is recovering. The Edmonton-based company suffered from the abrupt departure of its CEO, an announcement of impairment charges, consolidation around its domestic market, and analyst downgrades.
However, once it reported its earnings – which saw substantial falls in revenues – it seems that some found its price to be attractive. As long as the marijuana company has a pulse, it has a value that is for higher than C$2 per share.
ACB stock price
Aurora's Toronto-traded shares have hit C$2.18, already 28 cents – or 14% – above the all-time low of 1.90. The four-hour chart his showing that momentum has turned positive, a bullish sign. On the other hand, the weed stock trades below the 50, 100, and 200 Simple Moving Averages and the Relative Strength Index has exited oversold conditions.
Key resistance awaits at 2.40, which is the confluence of the 50 SMA and a recent swing high. 3.05 capped the equity's price and served as an upside target. Marijuana stocks tend to experience high volatility.
Investing in marijuana stocks
Pot equities held lots of promises in late 2018 and early 2019 before investors also began demanding results and sent shares lower. Canopy Growth Corporation – backed by Constellation Brands – has been enjoying an upswing, which shows that the potential can be realized. Analysts suggest that Aurora can follow its footsteps once it gets its act together.
Products range from direct growing and sales of cannabis, through beverages and other products. A critical theme for these companies is the lengthy legalization process in the US, which is set to reach the federal level in the future.
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