Cronos Group, Inc. engages in the production and distribution of cannabis. Today we will take a look at the chart, and we will define what's the scenario we are waiting for before trading.
Between 4 to 5 dollars we can see a support level that has been working since 2018. That means that we are in an interesting situation regarding a historical low from where we observed MAJOR bullish movements starting from here.
But what is the plan for this? As always, my answer comes from observing past behavior, and in this case, what I can see is that in the previous 2 scenarios we had clear Flag patterns corrections before the big event.
So the plan is straightforward: I want to observe a flag pattern or any type of correction with similar size and duration before thinking about risking 1 dollar on this stock. An important aspect when you trade like this is that you can not force the market to provide opportunities, the only thing you can do is get ready for when the market decides to make the formation you want to see. PATIENCE AND PATIENCE
The place where I expect to start observing the flat pattern formation is around 8.20 that's the zone where the short-term bullish impulse found a minor resistance and the consolidation started in previous scenarios. (This may be useful for short term traders)
Thanks for reading! Feel free to add any idea regarding the Cannabis sector or views about this chart.