McGuireTO

CRON tight range likely to break on Monday

NASDAQ:CRON   CRONOS GROUP INC
CRON formed its second daily inside bar on Friday as the range tightens up and the volume drops off. I'm looking for a break of range and a volume spike on Monday. I like inside bars because they signal equilibrium ( pennant ) patterns on a lower timeframe. Sure enough if you zoom into the hourly chart you can see a beautiful equilibrium playing out within our daily multiple inside bars.

Having pulled back 30% from all time high over the past seven trading days I'm anticipating a bull break as more likely that not, but correlation to sector leader Canopy Growth and the overall market will be worth keeping an eye on.

The range I'm watching is the low of Friday and the high of Friday, 10.86 - 11.40. Key daily support is 10.82, so any attempts to make an early entry by bottomfishing this range should have a stop loss just below that level.

On a bull break I would expect CRON to top out around $12.50-13.00 and then look for a tightening range on the daily chart . On a bear break we're looking down another 14% before our next support at 9.26.

For anybody playing CRON on the Canadian ticker, the setup is a little different. The range to break is 14.11 - 14.77. Key daily support is 14.05 so your stop should be just under that. On a bull break I would expect to top out around 16.00 and on a bear break we're looking down to test $12.05 support.
Thanks!!

Here's my chart:

Thoughts?
+1 Reply
McGuireTO HansMast
@HansMast, Not bad, I think you got the important part, which is the tightening pattern playing out. However I think some of your trend lines could be drawn a little more accurately. Check out this video, it helped me out a lot when I was starting out https://www.youtube.com/watch?v=n8_l_NUKDAc Let me know what you think and keep up the great work!
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