CRON Stock Price Forms a Bullish Pattern ahead of the Report
The Cannabis Stocks market has experienced a significant decline since its peak in the spring of 2019. The share of the Canadian company Cronos (CRON) then formed a high above USD 24, and trading yesterday closed at USD 2.55.
However, even after the CRON share price fell 10 times, there are still reasons for optimism:
Cronos recently announced its first entry into the edible chocolate category with the introduction of Chocolate Fusions. Cronos' newest edible innovation was developed by an expert team of culinary experts, nutritional scientists and leaders in cannabis product development.
InvestorPlace named CRON to its list of top Cannabis Stocks to Consider Buying in Spring 2024. The argument is a reminder that Altria invested USD 1.8 billion in Cronos.
At the same time, technical analysis of the CRON stock shows bullish signs:
The CRON stock price forms a rounding bottom pattern, or sometimes called a saucer bottom. The pattern is shown as a blue curve.
The BC move is approximately 50% of the AB move, which meets the criteria for an intermediate correction after a bullish impulse. It is also seen as a bullish sign that a candle with a long lower shadow is noticeable at point C.
The price has broken the upper boundary of the long-term channel (shown in red), indicating that the period of decline may be over.
Meanwhile, Wall Street is not very optimistic yet. According to analysts surveyed by TipRanks, the average price target for CRON in 12 months is USD 2.31.
Whether the bulls will be able to confirm the seriousness of their intentions will become more clear after the reaction of the CRON share price to the publication of financial statements for the 1st quarter. The event is scheduled for the evening of Thursday, May 9.
Read more: https://fxopen.com/blog/en/oa-cron-stock-price-forms-a-bullish-pattern-ahead-of-the-report/
Text source: Forex Trading Blog
