Aurora Cannabis Inc (TSE:ACB) (OTCQB:ACBFF) (FRA:21P) and the rest of the cannabis sector can breathe a sigh of relief—at least for now.

With Canopy Growth convincingly breaking through the key $25 area glass floor this morning, trading looked bleak in the session’s opening hour. However, a resounding and technically significant reversal commenced after 10:30am, lifting the whole sector from the depths of the abyss.

If you’re wondering whether this last statement is hyperbole, we beg to differ.

Forty-five minutes into today’s session, Aurora Cannabis had already traded down to $6.80/share, ↓8.11% on the session and ↓42.32% since March 6! Looking back a little further, Aurora Cannabis was down over ↓55%, peak-to-trough since announcing its merger plans with CanniMed Therapeutics January 24. To say the stock was simply ‘oversold’ would be a terrible injustice to the ongoing massacre at-hand. The last few weeks have been nothing less than a pure, unadulterated beat down.

Furthermore, at its session low point, Aurora Cannabis was only $0.45 away from the 200-Day MA. Given the way direct competitor Aphria Inc. sliced through the ‘200’ with ease last week, Aurora investors surely didn’t want to go there. Sustained price action below the 200-Day MA is perhaps the most visible demarcation of weakness in the entire trading/investing world. Many investors steadfastly refuse to accumulate any long positions until that level is cleared.

Should it eventually get to that point, good news exists: the $6.10-6.40 area provides an incredible amount of support for Aurora Cannabis. The ‘200’ isn’t just sitting out there in solidarity. There’s a solid area of support stretching from the November 2017 highs to the back-tested December 2017 lows. Furthermore, Aurora bears would presumingly be close to tapped-out at that point. Aurora isn’t an internet stock or ICO with a pie-in-the-sky business model. Given valuations can be debated, but Aurora Cannabis will be a survivor and has an outstanding pipeline of diversified cannabis products and services.

Bears will be wary of pressing their luck too much further, in my opinion. They just may find another massive intraday reversal awaiting them.

Cannabis Stocks and Other Assorted Tidbits