- ACB trims part of Tuesday’s gains to the 0.75 region.
- The White House, US Senate and Democrats agreed on further stimulus.
Aurora Cannabis Inc. (ACB) is struggling to keep the recent upbeat mood on Wednesday, trading slightly in the negative territory below the 0.72 mark in the pre-market activity.
The stock closed Tuesday with decent gains following the generalized upbeat mood in the riskier assets, all in response to the latest round of monetary stimulus announced by the Federal Reserve at the beginning of the week, which included, among other measures, open-ended purchases of Treasuries and MBS.
Further out, earlier on Wednesday, the US Senate along with the White House and Democrats agreed on further stimulus to counteract the expected negative impact of the COVID-19 on the US economy. Markets, however, appear quite sceptical on the news, as reflected by the current negative performance of futures of the S&P (-1.77%), DowJones (-0.71%) and NASDAQ (-1.40%).
Let’s recall that the extreme “oversold” condition of ACB (daily RSI just above 30.00) could spark a bounce in the short term. However, this view should be taken with a pinch of salt and could well represent an opportunity to shorten the stock. Supporting this view, the ADX indicator – which gauges the strength of a trend – is hovering around 43, signalling a strong (down) trend.
Aurora Cannabis Stock Price
At the moment (pre-market), the stock is losing 0.14% at 0.716 and a breach of 0.60 (2020 low mar.19) would open the door to 0.34 (monthly low Aug.2016) and finally 0.32 (monthly low Jul.2016). On the flip side, the next hurdle is located at 0.81 (high Mar.23) seconded by 0.84 (weekly high Mar.20) and then 1.06 (21-day SMA).
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