Welcome back to another chart, Today’s chart will be on the MJ sector – CRON
Points to consider, - Price is trending bullish up retest of trend line - Local resistance a .618 Fibonacci Line - RSI coming into apex - Stochs testing resistance - EMA’s giving price resistance at current given time - Volume is well below average - VPVR, showing low volume of transactions from current point - Current support is being held by the Fibonacci extension – 1.272 zone
CRON is in an interesting place at current given time, it is testing it’s upwards trend line, CRON bulls and or bears have an opportunity to take over from this point…
Price is currently testing support being provided by the Fibonacci Extension which is in confluence with the upwards trend line. Bull have the probability of pushing price up from here as CRON has had a major downwards rally, it would only be natural for the price to have a relief rally…
The RSI is getting closer to its apex whilst the stochastics is testing its local resistance. Volume is currently well below average, we need to see an increase in volume if price where to break either direction.
If CRON is able to respect its trend line, then the probability of retracing back to the .618 Fibonacci is more favourable, posting a potential gain of 20.56%. However if bears break this support and trend line, then CRON can test next lower local support, posting a gain of 27%...
A break either way needs to be confirmed with volume, the VPVR shows low levels of transactions from this point both ways, price should be able to reach targets comfortable upon breakout… What are your thoughts?
Will CRON respect trend line or break bearish and test lower levels?
Please leave a like and comment
And remember,
“Amateurs think about how much money they can make. Professionals think about how much money they could lose.” – Jack Schwager
It is at a very interesting spot, certainly. I figured to share my own interpretation, for the friction of thought. I have taken all time as a trend line, copied that upward to extend the initial move upward. Both bottom lines line up perfectly, each in their own right. The other two lines mark the paralell extentions of the peak and rebound when the Altria investment were announced. I find that also these lines provide an interesting projection.
I'm not a trader. I have been waiting for my MJ stocks of choice to come down to reasonable levels, to take 4 to 5 year positions. The current valuations are very interesting, although CRON doesn't have a clear path to profitability yet. I believe in their business model, however, and decided to enter into a long position when it dropped recently. If the current supports give way, I would look upon that as a rare opportunity to stock up significantly.
Barkworth
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I forgot to add that it recently tested the extended Altria rebound level, the magenta line.
Barkworth
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Another observation I had, is that the two fat green lines have the exact same angle. The only difference is that the price is trading above it right now. I don't think it is valid, however, since it only has 2 pivot points and it didn't seem to serve as recent support/resistance. I am fascinated by the mathematical symmetry of it, however.
Barkworth
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Here is a closer look at all of it...
AzizKhanZamani
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@Barkworth, I have been recently studying these charts and feel that CRON is at a very key level, yes it would be a great opportunity to take longer term positions if this support where to give way. I agree on your observations, this whole industry is quite fascinating and super exciting to see where it's headed!. I believe that the green lines (second photo), are pushing price into a tighter pattern where it will have to break either direction from its apex, with support being strong in that area, it is more probable for CRON to bounce!
Barkworth
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@AzizKhanZamani, Thanks for your feedback. The industry is gaining momentum. Most of the stocks have lots of room to trade sideways before meeting the upper trend lines again. The upcoming legalisation/regulation of derivatories could prove to be the next catalyst for a decent wave up, instead of a sell the news event like with the Farm Bill last year.
It is at a very interesting spot, certainly. I figured to share my own interpretation, for the friction of thought. I have taken all time as a trend line, copied that upward to extend the initial move upward. Both bottom lines line up perfectly, each in their own right. The other two lines mark the paralell extentions of the peak and rebound when the Altria investment were announced. I find that also these lines provide an interesting projection.
I'm not a trader. I have been waiting for my MJ stocks of choice to come down to reasonable levels, to take 4 to 5 year positions. The current valuations are very interesting, although CRON doesn't have a clear path to profitability yet. I believe in their business model, however, and decided to enter into a long position when it dropped recently. If the current supports give way, I would look upon that as a rare opportunity to stock up significantly.