CRON closes above its opening price after recovering from early selling pressure
Cronos Group Inc. (CRON) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CRON finished the week 21.16% higher at 6.70 after surging $0.50 (8.06%) today on high volume, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 6.70 marks the highest recorded closing price since February 21st. Trading up to $0.33 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, CRON gained 11.94% on the following trading day. Closing above Thursday's high at 6.29, Cronos Group confirmed its breakout through the previous session high after trading up to $0.57 above it intraday.
Daily Candlestick Chart (CRON as at May 22, 2020):
Friday's trading range has been $0.92 (14.67%), that's far above the last trading month's daily average range of $0.41. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRON.
The share managed to close above the 100-day moving average at 6.33 for the first time since January 23rd. Prices are trading close to the key technical resistance level at 7.08 (R1).
Crossing above the upper Bollinger Band for the first time since January 17th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 5.70 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Cronos Group. Out of 1 times, CRON closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 13.47%.