This Cannabis Stock Made Me $418 In 15 Days — Here’s How

A few days ago I wrote a piece on Aurora Cannabis stock, stating the reasons why I was looking into that particular stock. You can check it here:

So as explained above I saw a possible technical resistance level at the $8 level. I patiently waited for the confirmation of the pullback, which indeed was confirmed.

To be honest, I was not expecting it to be so light!

On the 4th of March, the stock price touched the $7 level and triggered one of my alerts. I was ready to catch the downtrend and possibly go short. However, there was no volume confirmation on the daily chart so I ended up not taking a position.

Surprise, surprise!

The next day to my surprise, there was a volume spike but for the bullish side. Watching the strong uptrend, I have decided to take a long position buying 200 shares at $7.60.

I decided to take this trade as a swing trade. If it reversed fine, I would hold it and it would be my entry point for a long position.

The next days brought some positive catalysts with the addition of Nelson Petz as an advisor to the company. Investors took the news very positively and the stock soared to the 10$ level.

That being said I ended up being more than 30% up on this position. So I decided to put a stop loss at $9.69 level, which unfortunately got filled during the day.

Still I had a 27.5% gain! So I am happy with it!

The close price was $9.94 with the high of the day at $10.14. The low of the day at $9.64 was just above my stop loss.

So my profit was $9.69*200 -$7.60 *200 = $418 (excluding fees)

Bottom line is that I decided to lock in profits if the stock price suddenly reversed and I guess I was not the only one.

The Short Term Future

Right now, there is technical resistance at $10 level or a resistance area between $10 and $12. I am curious to see what will be the result out of it and if the bulls will keep strong.

Also, the RSI indicator is above 70, confirming a possible reversal to the downside by being overbought. Technicals are technicals and as seen with this trade, positive catalysts can disrupt what the technical analysis indicates.

As for me, I will set up my alerts to catch some strong move and see if the stock breaks the next resistance. If it does I might re-enter a long position. If not let’s see where the next support will be.

If you liked this article be sure to leave your comment below and follow me on Medium. I usually post about saving tips, investing, occasional trading and a bit of my experience as an expat in Europe.

Disclaimer: I am not a financial advisor. Always do your own research when investing in stocks.