This current week is the period in which Canada is expected to pass sweeping legislation to legalize recreational cannabis use. Investors are currently positioning themselves for the outcome.

CRON-6-6-18-293x300 Cronos Group (CRON) Technical Update 6-6-18

 

On May 3, we covered Cronos Group, a Canadian cannabis produced that posted strong fundamentals yet declined by 15% (1) on fears that its aggressive expansion and investments may not produce an immediately favorable return.

 

On a technical level, we wrote that from a “technical” standpoint, the current bearish sentiment can’t be confirmed unless the move follows through; that is price breaks below the support/swing-low point at (2).

 

As you can see on the chart, that breakdown follow-through never occurred, and is now rising on relatively high volume to meet its April 17 highs at (3) of $7.90.

 


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