ACB BLOOD| Volume Climax| Oversold Bounce?

16 Kas 2019Hello Traders,

Today’s chart update will be on ACB – Aurora Cannabis INC, which is in a severe down trend that has been respecting Fibonacci extension levels. Price is currently testing a critical technical level that needs to hold to avoid capitulation…

Points to consider,
- Strong establish bear trend
- Support being tested
- Structural resistance retest
- Stochastics in lower region
- RSI oversold
- Volume Climax

ACB has clearly been putting in lower highs consecutively on the daily timeframe, there are no signs yet of this changing. ACB is currently testing a critical support level that is in confluence with the 1.618 Fibonacci level. This level needs to hold otherwise ACB is in a risk of capitulating. Structural resistance has been confirmed with a bearish retest which also further confirms the S/R flip.

The Stochastics is in lower regions, can stay down here for an extended period of time, however we do have lots of stored momentum to the upside. The RSI historically bounces from such oversold conditions; however we don’t have a clear sign of the bounce starting.

Strong bear volume has put in a volume climax bar, signalling a potential exhaustion in the bearish trend; it would only be natural for the price to see a relief bounce from such lows. ACB has also been respecting the Fibonacci Extensions, price is approaching the 1.618 Fib Extension that is in confluence with the critical support level, increasing the probability of a bounce.

Overall, In my opinion, ACB is on the verge of capitulating if this critical support is not held, it is however more probable for an oversold bounce due to the sharp decline in this bear trend.

What are your thoughts on ACB?

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And remember,

“If you don’t respect risk, eventually they’ll carry you out.” – Larry Hite