ACBFF (Aurora Cannabis Inc) has broken out above this bullish pennant continuation pattern today following a sharp advance on above average volume. The stock has resistance at the Nov 30, 2015 high of 0.59 to clear but could continue towards the measured target of 0.83 if that level is taken out. While I don’t normally add penny stocks as official trade ideas, I’m going to go ahead an add ACBFF as an official trade idea (both a Long Swing Trade as well as a Long-Term Trade idea) with an entry around current levels (0.55) and an optimal entry range from 0.52 -0.62. The sole price target at this time is 0.81, which is just below the measured target of 0.83. However, should the stock continue to rise on increasing volume, additional price targets may be added. The suggested stop for the trade will be a daily close below 0.464 or any intraday move below 0.44).
ACBFF daily Aug 24th
As as low-priced, OTC penny stock, this should be considered a very aggressive, speculative trade. Should one decide that such a trade meshes with their unique trading style, objectives & risk tolerance, then they should consider making a considerable reduction to their position size (e.g. 10% or less than a typical swing trade position) in order to account for the above average gain & loss potential.
Unlike many of the low-priced cannabis stocks that have been posted as unofficial trade ideas within the trading room over the past year, Aurora Cannabis Inc seems to have a somewhat sound business model, complete with the following website that provides a company description (the produce & sell medical marijuana in Canada) along with a page of information for investors: https://auroramj.com/investors/ Aurora also trades on the Canadian Securities Exchange (CSE) under the symbol ACB as well as the Frankfurt SE under the symbol 21P (click the link to the investors info for more details). With that being said, I have not thoroughly vetted the fundamentals on this company so I would highly suggest to DYODD.