The first time I was introduced to CRON it was at 23/share and my first thought was it was a sell. Now that the early buyers have taken their profit and more states are looking at legalizing marijuana, it is ready for another run to new highs.
Using a logarithmic scale and Fibonacci retracement, we can see that the 61.8 lines up very nicely with an ascending trendline support. May 1st looks to be a point where multiple important signals will coincide. Price should reach the 61.8 retracement and trend-line support, daily RSI comes back above 30, stochastic comes back above 20, and the MACD will likely cross all in the same week.
My plan is to take a small long position at ~14/share with 1:1 leverage and likely no stop loss as this will be a long term hold. As price confirms the upward direction, I will scale into the trade adding a trailing stop equal to slightly under the ascending support line.
Has your plan changed since the CGC/Acreage deal was announced? I like everything you have to say but didn't expect that announcement to affect the entire sector as strongly as it has( this is what makes this hypergrowth sector so exciting).
louisleeiv
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@RacksBlue, No, it hasn't. I think this sector has a lot of growth in the next few years, especially as it becomes a more talked about theme in the next presidential election. I generally prefer trades that last 1 day to 2 weeks, but this is one that I'm looking at holding for a year or more. I know two other people that own this stock at $8-10, and they both are in it for a ten bagger. My long bias has a solid fundamental base in my opinion and the technicals support it also at this point. I think this pullback is a good time to get in. BTW, I tried several times to get the chart to show the "log" version, but always failed. The trendline does match up with the Fib retracement that way, just not on a linear price scale.
RacksBlue
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@louisleeiv, Thanks for responding, much appreciated. I got in at $11 went for the ride to $25, thought it would break to the upside after it ranged for some time but I was wrong. Pulled my initial investment at $18 and now playing with the houses money. I think i'll add to my position if we get a pull back to fib6. Not seeing a near term catalyst that would bring us to new highs. Keeping a close eye on it.