CRON trade ideas
CRON LongWeekly chart
1. Downtrend Channel breakout + revisit
2. Wedge breakout + revisit
Entry 7
Stop 5
target1: 13;
I am not a PRO trader. I need few months to practice trading strategies.
If you like this idea, please use SIM/Demo account to try it, until my trading plans get high winning rate.
CRON - Cannibus on MonthlyOn a zoomed out timeframe this is easier to see. Double bottom and consolidation around the .78 Fib retracement on the
monthly time frame. The RSI is rising & the MACD is looking to create a cross to bullish. The fundamentals are strong on Cronos and back by Altria (Marlboro). Solid risk reward opportunity on the longer time frame if you don't get caught up in the high daily volatility. Cannibus is being legalized globally as we speak and cannibus innovation is happening. Maybe a better opportunity than buying stock in Miller, Bud etc. companies during prohibition... It is the new opportunity for our life time and the entry price to play is fair... Cannibus and blockchain our some of the biggest innovations and investment opportunities of our lifetime for those willing to ignore the FUD and okay with daily price fluctuations as the assets mature.
CRON the gift that keeps on givingSo CRON went up on election results to 8.80 on rumors that a Biden administration will move cannabis off the schedule 1 list. For us, just a wave 3 extension. Called for a retracement into our box area of 6.45-7.00, and hit it squarely! Now we are following a move over it's wave 3 end (8.80), targeting 9.11. Under 6.09 invalidates the pattern we are following, so keep an eye on price, and as always mellow out.
50 EMA Flipped to support- Looking to confirm new cannibus bull 50 EMA acted as support during bull run. Price closed above 50 EMA last week. Looking to close week above $7-$7.30 and then start wave up to 200 EMA area. Fundamental picture looks good for Cronos, with lots of cash, strong strategic partnerships (Marlboro Man) and regulations moving towards federal and widespread global legalization. I'm an investor on this play and long term HODL. Okay to enter now around $7 dollars in my opinion. I am prepared to dollar cost average from this entry point if we go lower. Similar price action to crypto market cycle and MJ is here to stay and expand in this social environment. Realization of the benefits are coming around on a much larger political scale. HODL'ers will reap rewards compared to the average trader
CRON - ABC or 1-2-3?Bear count in red, bull count in blue. I'm thinking a buy around the gap close could be a reasonable try. Then look for an exit if it breaches wave 1 territory.
$CRON Cronos $12.00 Major Point of Interest
Lets look at the levels of interest.
Pre market the stock has hit resistance at the .236 FIB and strong horizontal resistance levels.
Alert set for break above $9.25 with targets
$10.25 & $11.90.
$12.06 is the bead cat bounce Fibonacci level to watch, breaking above would be hugely bullish.
Care needed as these stocks can have severe drops and shorts unlikely to throw in the towel yet.
Which cannabis stocks should I now that Biden is the president?Which cannabis stocks should I now that Biden is the president (part 1) : Going first with Cronos Group.
Biden won (although Trump wouldn’t agree😊) and the sentiment is talking about green energy stocks, electric vehicle makers, telecommunication stocks, cannabis stocks, government bonds and more. But we cant invest in everything and we cant relay on market hype to make a sound investment. So first I wanted to break down cannabis stocks as they have rallied dramatically in the last 2 trading sessions.
But before all that lets state a super important fact: Arizona, and South Dakota recently voted to legalize recreational marijuana! BOOM!
I choose to start this series with the first stock of Cronos Group.
Cronos Group
Heavily funded by Altria group investment in 2018 with 1.8 billion, the company has been operating in the last two years with no factual growth or sales, I mean 10 million in sales in the cannabis world market would be a drop in the bucket.
Stock rallied 10% in the last week upon elections but once the 15 min of fame are over this stock isn’t going to do much in my opinion.
The spending on growth and technological developments such as “fermented cannabinoids” which I will explain now, have cost the company to fall behind in the cannabis race on market and sales share.
So what is fermented cannabinoids?
The Cannabis flower isn’t using cannabinoids in order to maintain its survival, which can cause a change of up to 30% in the concentration of the flower’s cannabinoids, even if grown in identical conditions it still varies from one flower to another. So, extracting and controlling this would be a very difficult task.
Fermenting it is basically growing its cells in a lab and duplicating them instead of growing the flower itself – again this is explaining it in a nutshell of course.
So the news about Biden wining can maybe translated into good news for Cronos Group, but for me as a skeptical, I’ll need some proof of concept before jumping in and that means sales sales and more sales!
TECHNICAL VIEW on Cronos Group:
Highest high pre COVID was a25.1$ at February 2019.
Dropped from there all the way to 5$ with one Bullish week during that slope.
Then was side channeling from 5$ to 7$ and gave one fake out on June @ 8.09$ and went back down.
This Friday it broke resistance and touched 8.4$ just to drop back down to 7.5.
With all rally and resistance tested twice and broken, I expect the stock to rally up more to the 13$ zone (retracement to the 38 Fib line) but I don’t see it going further then that at least in the upcoming 4-6 months.
Short term Buy
Long Term Sell
Revise again at March 2021.
Here is a chart comparing all major cannabis stocks one next to another (not including Grow generation group that could not fit in the chart since price is too high)
Next up we will cover Canopy Growth!
WE analyze the stock market acc to the great Ralph Nelson Elliot and combine that with fundamental and sentiment analysis on a theory we call Market Cycle Based Analysis and that gives us high prediction rate 😊
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$CRON following pattern very nicely, where to add?OK so another that took off on the buy the rumor is $CRON. Rumor has it with the results of the Presidential Election that the new Federal government will look more favorable towards cannabis and take it of the Schedule 1 drug list. As per our pattern, CRON got its wave 3 all the way to our wave 5 target around 8.13. No matters, extensions happen. If 3 is over, and we think it might be, then expect pull back towards the 6.45-7.00 level. That is our buy zone. If we get a shallower pullback (the market owes us nothing), then a sign of real bullishness. But if it follows our current levels and drops to our buy zone, then we expect a target for finishing wave I of 3 of 9 or higher. Keep it real folks, and mellow out.
CRON - No all bullishThough it all looks impulsive, I see too many signs of weakness. This would just be corrective bounce, still looking for a monthly lower low.
Lets see it break $6.80 and close above. Maybe that'll bring out the bulls.
CRON Into Earnings: Gamble!How much revenue this time? $11M? There are gaps to close, and resistance failed 3 times. I'm bearish here, but planning to buy the gap fills in anticipation of a bounce.
I will find an exit if it reaches below the invalidation line.
CRON - Pick Your SideStuck below key resistance. Bearish divergence on all time frames.
A break higher would be very bullish. A break down would also be bullish, but would offer a better entry.
CRON longCRON hits the ideal retracement after a nice impulsive move up. So looking for the red pattern as primary....
$CRON Cronos Group On verge of break above 200maCronos Group, Inc. engages in the production and distribution of cannabis. Its brands include PEACE NATURALS, COVE, Spinach, Lord Jones and PEACE+. The company was founded by Lorne Michael Gertner and Paul Rosen on August 21, 2012 and is headquartered in Toronto, Canada.
People Who Don't Trade Options Are Missing OutJust a quick trade idea that I put on recently. I sold $5 strike November '20 CRON puts for a credit of 0.86 on Tuesday afternoon. This trade yields about 21% within one month, unlevered, and the stock has to drop almost 40% before you start to lose any money. With this trade you are committing to buy CRON at a price of $5, should your option be assigned. This seems like a fine deal to me, as $5 has served as a strong price base over the last several months and I expect it will continue to do so as various weed names continue to see more and more interest broadly. With the leverage I have at my firm, I'm able to achieve a 100% cash on cash return in this stock in one month, using my allocated buying power / capital contribution.
CRON , while generally volatile, doesn't deserve this type of volatility pricing, and shouldn't yield this much return for accepting long risk in it. That said, if I do get assigned, I simply plan on selling OTM calls to further lower my cost basis and generate cash flow. This is what's commonly referred to as a 'wheel' strategy. Why do people make trading so hard? Start learning about options and how you can crush the markets and have huge margins of error on trades while still profiting (I don't sell anything, just passionate about options lol).
Trades like this happen every day and all over the place, if you know where to look.
CRON - Game On!Revisited this count and finally saw this ending diagonal. I am cautiously bullish here. Breaking above the trend line (breaking above $7) would be extremely bullish.
Scaling in from $5.50
Stop loss at $4.90
CRON Charging EnergyFantastic run up, and at the retest of upper resistance, made a higher high. I am currently leaning towards the bull side. We have just completed a wave 3 (or C), then made a higher high in a flat correction. Watch the levels closely, we could see continuation from here.
