Possible investment idea for Aurora Cannabis (ACB)
Updated
We can see in the chart that the is a possible SHS formation forming. For this to be valid we do need to have a break of the neckline first.
The thing that we can do now is just trade it long with our take profit level at the neckline and with our stop loss level right below the fake out that we got in the chart.
As mentioned in the chart we know that the fake out was because of the outcome of earnings.
If you want a better risk-reward ratio you can also just place your stop loss just below the support zone.
The only thing that is not good for me for this trade is the fundamental side of the trade. The company is not in a good financial state at the moment so if we would take this trade it would suggest you to keep that in mind when you are doing your risk management for this trade and trade smaller than normally.
The thing that we can do now is just trade it long with our take profit level at the neckline and with our stop loss level right below the fake out that we got in the chart.
As mentioned in the chart we know that the fake out was because of the outcome of earnings.
If you want a better risk-reward ratio you can also just place your stop loss just below the support zone.
The only thing that is not good for me for this trade is the fundamental side of the trade. The company is not in a good financial state at the moment so if we would take this trade it would suggest you to keep that in mind when you are doing your risk management for this trade and trade smaller than normally.
Note
We can now see that there is a price below the support zone. This is for me nothing to be scared of because it is the same thing that happened last time that they got earnings. When we look at the earnings we can see that they are not that good. But when we look at the earnings last time they also were lower than expected. And we see that we got a boost right after that. Going to keep this trade for now and see what next week will give us. If we are still below the support zone at the end of next week I might start to look for an early exit but that is something for next week.
Note
As said before the price that was below the support zone was just because of the bad earnings that it got. When we look at what the price is doing now we can see that is is back above the support zone so it looks like it does is respecting that zone for now.Going to keep you update on it if there is anything happening that is worth mentioning.
For now I am in this trade and planning to hold it. I am not sure if I am going to close it a the take profit zone or if I am looking to add it to my longer term investment portfolio. For this to be in my longer term we first need to see better financial reports for this company. I will also keep you updated on that.
Note
So this is not going that good. We can see that the price went below our support zone and is now trying to fight it's way back above it. When we look at all the other stuff and numbers that we get from the company we can see that it could be a while before this company will be profitable for us. This is an investment for me on the longer term so I am not stressing about is for now. When we look at the good side of this we can now buy the stock even cheaper.
Going to do a new analysis on this company and going to go over the numbers again in the next few days.
If you are interested in what I find there than you can message me and I will give you and update on that once I am done with it.
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