Even with a report of reduced enthusiasm for legalized pot in Canada, Cronos Group (CRON) reported a positive earnings surprise of $0.36 (US) versus estimates for a $0.03 (US) loss. Revenues continue to expand however, issues with distribution, packaging and licensing resulted in slower quarter-over quarter growth. As a result, Cronos Group's stock dropped 12.5% in yesterday's trading session.
FlashPoint Trading Academy entered a long position at $14.17 on this weakness as the stock has reached initial support at its previous breakout point. Further support can be found at its 250 EMA. Our initial target is set at $17.30 and stop-on-close below $13.15. This represents a 1:3 Risk:Reward.
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