ACB might look for reverse stock split

Aurora cannabis headquartered in Edmonton; Canada is a licensed cannabis producer. It is listed on Toronto stock exchange and New york stock exchange. ACB engages in production, distribution and sale of cannabis and cannabis derivative products in Canada and internationally.

ACB price is in strong bearish momentum and formed a low at $0.5620 level.

The current market structure for ACB shows that it received a pullback from the low to continue its move further downwards.

ACB price formed a $0.6781 level and more sellers jumped into the market to push price downwards. If the recent support gets broken, ACB price can easily slip to $0.50 level forming a new low. The year-to-date change in the price is -37.73% while one month change is -11.20%. There are no signs of bullishness in the market for Aurora cannabis stock.

Aurora Cannabis Receives Non-compliance Notice

ACB traded below $1 level for more than 30 consecutive trading days which led to the company receiving a non-compliance notice from Nasdaq. As the company breached the minimum requirement of Nasdaq, there are chances that the company might be delisted. ACB has been granted a 180 day period by Nasdaq, to regain compliance with minimum bid price requirement.

Although, the notice does not affect the day to day trading activities for Aurora Cannabis. In 2020, ACB did reverse stock split to stay listed on the NYSE and there is a possibility that ACB might go for another reverse stock split to stay listed on NYSE.

This can change the number of shares you own but change your investment. Moreover, a reverse stock split can push the price further down as this move will be considered as the company is not doing so well.

What Do Technicals Say for ACB stock price?

ACB price is trading below 20,50,100 and 200-day EMA indicating strong bearish momentum in the price. RSI recently crossed above the 50 mark and came straight down. RSI trades at 38.40 and might enter the oversold region in upcoming days. Chaikin money flow score is -0.29 indicating strong weakness in the market. ACB price has crossed the 20-day SMA headed towards the lower band of Bollinger. Bulls need to jump in the market to protect the recent support which might be risky for any kind of investors. The financial stability of the company has taken a strong hit and might take time to recover from the losses.

Conclusion:

The market structure and price action for Aurora cannabis is strong and is headed towards the recent support of $0.5620. The technical parameters of Aurora Cannabis are bearish and there are no bullish signs in the market. Investors should wait for proper confirmation before looking for a bid in ACB stock as it has turned into a risky stock.

Technical levels:

Major support: $0.5620 and $0.50.

Major resistance: $0.66 and $0.70.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.