Cronos Group (CRON) operates as a diversified and vertically integrated cannabis company. We wrote about Canopy Growth (CGC) on February 3 and that has just passed our $48 price target so we thought we would look at other names in the cannabis space.
The last time we reviewed the charts of CRON was way back on November 22, 2019 and in the past year CRON has hammered out a new base in the $5 area. Let's check further.
In this updated daily Japanese candlestick chart of CRON, below, we can see how prices have rallied in the past three months - going from $5 to $14. CRON is trading above the rising 50-day moving average line and the bullish 200-day moving average line.
The On-Balance-Volume (OBV) line shows strength and the Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of CRON, below, we can see that prices made a big rally in 2018 when traders got on the cannabis bandwagon. Prices are coming back and are trading above the rising 40-week moving average line.
The weekly OBV line has been moving up since October and confirms the price gains. The MACD oscillator turned bullish in November.
In this Point and Figure chart of CRON, below, we used daily price data. A price target of $13.75 has been reached.
In this weekly Point and Figure chart of CRON, below, we can see a price target in the $20 area.
Bottom line strategy: CRON has joined the 2021 cannabis rally. Traders should look to buy available weakness into the $12 - $11 area and then risk to $9.50. $20 is our first price target for now.
