CRON finds buyers again around 5.86
Cronos Group Inc. (CRON) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CRON ended the month -7.96% lower at 6.01 after losing $0.09 (-1.48%) today, strongly underperforming the S&P 500 (1.54%). Trading $0.12 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CRON as at Jun 30, 2020):
Tuesday's trading range has been $0.29 (4.81%), that's below the last trading month's daily average range of $0.46. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CRON.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 25th, CRON lost -4.91% on the following trading day.
Prices are trading close to the key technical resistance level at 6.21 (R1). After having been unable to move lower than 5.82 in the prior session, the market found buyers again around the same price level today at 5.86.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 5.82 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Its common bearish interpretation has been confirmed for Cronos Group. Out of 93 times, CRON closed lower 56.99% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 55.91% with an average market move of -0.23%.