Finance

Aurora Cannabis inc.set to end week on high note as federal legalization advances

  • Aurora’s stock price has rallied 38% in three days, escaping the abyss.
  • The November high of $5.03 is eyed as the next target.
  • The US House of Representatives is advancing a legalization bill on the federal level.

Aurora Cannabis Inc. (ACB) has been a star performer. Shares of the Edmonton-based firm have soared 38% in three days amid a euphoric melt-up of pot stocks. 

Sellers that have feared Aurora’s dilutive debentures scheme have been weeded out. The equity bottomed out at $3.00 on Monday before shooting for the highs. Despite the unattractive financial offer, it was taken up by 94% of buyers, well ahead of the March 2020 deadline. The robust participation shows a high level of trust in the company.

Aurora Cannabis Stock Price

ACB shares closed at $4.14 on Thursday, which is more than half the drop from the November 13 peak of $5.03 to the trough of $3.00. However, at an increase of 56%, the recovery falls short of the Fibonacci 61.8% that would convince technical traders to join in. 

It is also essential to note that Aurora Cannabis’ price peaked at $13.67 in the past 52 weeks – and at current prices, it is nearly 70% down, albeit substantially above the bottom of $2.82.

Investing in Marijuana Stocks

Marijuana stocks have experienced considerable volatility, and the recent upswing for the whole sector may be attributed to Jerrod Nadler, Chairman of the House Judiciary Committee. The New York Democrat oversaw the passage of a bill that aims to legalize cannabis on the federal level. The promising 24 to 10 vote indicates that broad support. However, members of the lower chamber were warned that the upper one is unlikely to take it up. 

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Senate majority leader, Mitch McConnell, is a life-long opponent of legalizing marijuana. The Kentucky Republican may particularly be opposed to provisions to expunge past criminal records. The right-wing party has a tough stance on crime. 

Regulation may have a further impact on cannabis stocks. ACB’s shares remain at the forefront of weed stocks. 

View more information: https://www.fxstreet.com/news/acb-stock-price-aurora-cannabis-incset-to-end-week-on-high-note-as-federal-legalization-advances-201911221442

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