Aurora Cannabis (ACB) Stock Price and Forecast: Rollercoaster for getting high!

ACB stock split in May, had big revenue growth in 2020.
Hopes grow for US legalization of cannabis under the Biden administration.
Volatile stock with lots of retail interest, bullish trend goes on.

Ivan Brian FXStreet

Aurora Cannabis (ACB) had a rollercoaster 2020. In May ACB announced a stock split. ACB also published results in May, which beat expectations. Aurora (ACB), a Canadian based cannabis producer based in Edmonton, Canada, announced revenue growth of over 20% as the pandemic lockdowns increased sales of marijuana. ACB stock surged nearly 70% after results to hit a high of nearly $20 on May 18.

ACB stock price: Too high!

However, that rally was as good as it got in 2020 for ACB, as it gradually gave up all the gains and by the end of October ACB stock price was trading back below $5. ACB has been on a rationalization drive, appointing a new CEO, reducing its cost base and capital spending. ACB announced in September that it would have to take a significant non-cash write-down of goodwill and intangible assets.

Let’s get high again

November was a different story as ACB rallied nearly 200% to hit a high of $14.48. The victory of Joe Biden in the US presidential election was seen as a catalyst for cannabis reform in the US, as well as some legislation passing the first stage towards making cannabis legal.

Aurora (ACB) is a very volatile stock with a lot of retail interest. As a result, it tends to react to news pieces aggressively. Last Thursday, ACB announced a distribution deal and ACB stock price rallied 10%. ACB gave up those gains during the next session.

ACB technical analysis

Smaller stocks with large swings make technical analysis a bit more challenging as euphoria and despair can blast through any technical levels. But ACB currently still holds its bullish trend with the classic series of higher lows and higher highs, which are backed up with the RSI and MACD uptrends. A break of $8.21 would mean the end of the uptrend pattern. The $14.47 high remains key resistance.

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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