I am basing this off of the patterns seeing in the first Elliot cycle which just completed. Obviously, it is difficult to see this far out, but Cron trades well technically. Here is the possible formation that waves 1,2 and 3 might take, based on the patterns seen in the last cycle.
@cvachon I would like to know your opinion in the current scenario. Thank you.
cvachon
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@venswam, Brutal week. Here are a few observations- If you look at the 15 bars from Tuesday, you will see that most of the declines came from what looks to be large short orders. This has continued, and continues today. In the absence of clear catalysts, shorts are taking all the can from the stock and sector. The sector is weak, Cron's progress is more or less stalled until they can ride into US markets through Altria networks, but this cannot happen until the Federal government moves on cannabis reform, and they are stalling. Right now, Cron is trading close to book value, still, looking at the chart this week, I don't see any indication that these short positions have covered. Looking at the chart, the lower channel has been broken this week. Looking ahead, I think it is possible that the stock retraces the fifth wave. Parabolic rises retrace deeply, and I think we might see this. I think shorts may try to push this down to mid 5's before they cover. At this point, it will be way oversold, and I think accumulation will begin heading into next year.
venswam
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@cvachon, Thank you very much. I appreciate your analysis.
venswam
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Thanks, I appreciate your analysis. Where could the next point of resistance be?