Cronos Group (NASDAQ: CRON) Bullish Side Remains Intact
|Cronos Group (NASDAQ: CRON) is an innovative global cannabis company based in Canada. It’s one of the largest medical marijuana producer around the world and it was the first cannabis company to be listed on the Nasdaq stock market last year.
Today, the company announced its fourth-quarter and full-year 2018 financial results before the market opens. It posted gross profit before fair value adjustments of CA$2.5 million which is up 449% year over year. However, the company announced a fourth-quarter loss of CA$11.8 million compared to a profit of CA$667,000 in the prior-year period.
The stock is down 2.75% for the day and could be still looking for further losses in the coming days. Is this a start of a larger correction or the bullish cycle will remain intact ?
To understand the current situation we need to take a look at the technical chart of CRON with the help of the Elliott Wave Theory:
CRON Daily Elliott Wave Chart
Since IPO, CRON is proposed to be advancing in an impulsive waves as the stock keeps making higher highs and lower lows with enough separation. At current stage, it ended the red wave III cycle from October 2018 low and therefore a correction is taking place in a 3 waves Zigzag structure.
The correction in wave IV can reach the extreme blue box area at $17.9 – $16.4 from where the stock will be able to rally again to new all time highs or bounce in 3 waves at least. However to be able to rally higher, CRON shouldn’t do an overlap with September 2018 peak at $15.2 which would invalidate the impulsive structure.
Consequently, the bullish trend looks to be intact at this stage and the pullback would represent another buying opportunity for investors to continue riding the Long side.
Become a Successful Trader and Master Elliott Wave like a Pro. Start your Free 14 Day Trial at - Elliott Wave Forecast.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.