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Organigram's Stock Climbs Back Into Pattern After Q4 Revenue Beat

Organigram Holdings Inc. (NASDAQ:OGI) shares are trading higher Tuesday after the company reported better-than-expected fourth-quarter net revenue results. The company reported a net revenue of $24.90 million, beating the estimate of $19.13 million.

Organigram closed up 9.1% at $2.03.

Organigram Holdings Daily Chart Analysis

  • The stock looks to have reclaimed into what technical traders call a falling wedge pattern. The stock looked to have fallen out of the pattern, but crossed back above pattern support into the pattern once again.
  • The price has been getting condensed between narrowing highs and lows for a while and nears the end of this pattern. A break above the resistance or below the support could cause the stock to continue to move in the same direction if it can stay outside of the pattern.
  • The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely in a period of bearish sentiment.
  • Each of these moving averages may hold as a possible area of resistance in the future.
  • The Relative Strength Index (RSI) jumped higher Tuesday and now sits at 40. This shows that even with an increase in buying pressure, the selling pressure still outweighs the buying pressure overall.

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What’s Next For Organigram Holdings?

Bullish traders saw the stock recover and push back into the wedge pattern with the up day Tuesday. Bulls are now looking to see the stock push toward resistance and eventually go on to break above resistance. This could be a signal that the stock is changing long term trends.

Bears would like to see the stock continue to fall lower and push back below the pattern support. If the stock is able to hold below the pattern support and it starts acting as an area of resistance, then the stock may see a further bearish push.

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