Cronos Group opened higher on Friday after beating earnings-per-share estimates.
The stock set an opening high of $5.70, staying below its weekly risky level at $5.72. The stock is below a death cross on its daily chart and its weekly chart is neutral.
The Canadian cannabis company experienced distribution disruption due to the Covid-19 pandemic.
Cronos traded as high as $5.70 at Friday’s open. The stock is down 25.7% year to date and in bear market territory, 68.3% below its 52-week high of $17.96 set on June 11, 2019.
The stock is also in bull market territory 42.5% above its March 16 low of $4.
Its monthly value level is at a new 52-week low at $2.84. Its weekly risky level is $5.72, and its quarterly risky level is $13.38.
The Daily Chart for Cronos
The daily chart for Cronos shows that the stock has been below a death cross since August 13, 2019.
This sell signal occurred when the 50-day simple moving average declined below the 200-day simple moving average.
This tracked the stock to its March 16 low of $4.00. This day was a key reversal which is a buy signal. The close on March 16 was above the prior day’s high which defines a key reversal.
This tracked the stock to its April 27 high of $6.72.
The stock has been tracking the 50-day SMA lower since March 26. The 50-day is $5.76, just above the weekly pivot at $5.72.
The 200-day SMA has declined to $8.10.
The Weekly Chart for Cronos
The weekly chart for Cronos is neutral with the stock below its five-week modified moving average of $5.90.
The 200-week simple moving average or “reversion to the mean” is just starting to show at $6.94.
The 12x3x3 weekly slow stochastic reading is projected to rise to 45.22 this week up from 43.55 on May 1.
Trading Strategy: Buy Cronos on weakness to its monthly value level at $2.84. Reduce holdings on strength to the 200-week SMA at $6.94 and to its 200-day SMA at $8.10.
If the stock were to decline below $3.00 a share it would become an option on survival. This is when you invest with money you can afford to totally lose.
