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- 1 Aurora Cannabis stock price closed at $0.9828 while witnessing a gain of 16.57% during the last intraday session.
- 2 ACB repurchased $12.3 Million of convertible notes with a vision to achieve positive free cash flow in 2024.
- 3 Aurora Cannabis implements comprehensive plans to reduce operating expenses, improve margins, and streamline operations.
Aurora Cannabis (ACB) stock price has surged since September 8, rising from the low of $0.4510 to almost touching the annual high. The stock price formed a support at $0.46 and commenced a bullish rally, hoping to recover from the losses. ACB stock price touched a high of $1.15, almost touching the annual high of $1.21.
However, Aurora Cannabis’ stock price could not close above the $1 psychological level. The asset price then retraced, created support at $0.77, and reinitiated a bullish rally for retesting $1.21.
ACB stock has closed above the resistance level of $0.9630, commencing a breakout. If the next candle can break the high of the last candle, ACB stock price might fill the upper wick of the September 8 candle and retest $1.15 and potentially a $1.21 annual high. A close above $1 can provide a bullish confirmation.
On the other hand, if there is no follow-up bullish momentum and the next candle breaks the low of the last candle, the stock price might re-enter and retrace toward recent support of $0.77.
September Turns Out To Be Big Month For Aurora Cannabis
Aurora Cannabis and other pot stocks have been surging higher on marijuana reform in the United States, including potentially rescheduling cannabis down from Schedule I substance to Schedule III. U.S. regulations currently classify cannabis as a Schedule I substance, putting it in the same category as heroin, ecstasy, and LSD.
According to the Drug Enforcement Agency (DEA) classification, cannabis is in a category of substances with “no currently accepted medical use and a high potential for abuse.” Even if the DEA moves forward with rescheduling marijuana, it isn’t enough to make the substance legal.
Aurora Cannabis has also been doing cost-cutting as it looks to generate free cash flow next year. Since December 2021, it has repurchased $306 Million in convertible senior notes and estimates that have reduced its interest costs by nearly $24 million.
Will ACB Stock Price Shatter its Annual High in September?
The stock price has surged above all the major exponential moving averages, indicating strong bullish momentum. Chaikin money flow score stands at 0.13, suggesting strength in the market. The relative strength index has entered an overbought zone, indicating chances of short-term retracement.
Conclusion
Risk-bearing investors should consider nibbling in ACB stock as its turnout strategy of cost-cutting, restructuring, and international expansion starts to bear tangible results.
Technical Levels
Major support: $0.77 and $0.46
Major resistance: $1.40 and $1.20
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
