Cronos Group Inc. stock trades under the ticker CRON & has shown recent bullishness that traders & investors should take note of.
CRON stock closed at $6.71/share on 11/8/2021, after gapping up 25%+ on Monday.
Cronos Group Inc. CRON Stock’s Technical Performance Broken Down
CRON Stock Price: $6.71
10 Day Moving Average: $5.50
50 Day Moving Average: $5.77
200 Day Moving Average: $8.02
RSI: 69.8
MACD: -0.001
Yesterday, CRON stock completed a bullish MACD crossover, while gapping up over 25% on the day.
Their share price also jumped above the 10 & 50 Day Moving Averages, while trading on daily volume that was higher than average for the first time since June.
Given the nature of the steep jump yesterday, I expect there to be a shake-off period for their RSI to even out, as it jumped from slightly oversold to being almost completely overbought within a day.
With this in mind, there should be entry-points in the coming days for traders & investors to be able to get in & profit from.
The next price level of resistance to overcome will be the $6.72/share level, which they closed one cent below yesterday.
Cronos Group Inc. CRON Stock As A Long-Term Investment
Cronos Group Inc.’s stock is a cannabis stock, which investors may be interested in as a means of gaining exposure to the space in their portfolio.
CRON’s valuation metrics look fair, with a P/E (ttm) of 65.3 & a P/B of 1.22.
One area that stands out to investors is their sturdy 58.1% Quarterly Revenue Growth Y-o-Y.
CRON’s balance sheet looks appealing as well, with $1.1B in Total Cash (mrq) & Total Debt (mrq) of $7.54M.
With a Beta of 1.45, CRON stock will tend to be a bit jumpier than the broader market indexes, which is something that investors should be aware of.
They also do not offer a dividend, which may be off-putting to some investors, and may be in part to blame for their 17.6% % Institutional Investors.
Cronos Group Inc. CRON Stock As A Short-Term Trade Using Options
Short-term focused traders can take advantage of CRON stock’s recent momentum shift by using options.
I am looking at the contracts with the 11/19 expiration date.
The $6 & $6.50 call options look appealing being in & at-the-money.
The $6 calls are very liquid with 4,400+ contracts of open interest.
The $7 puts also look appealing for that time period, as the $7.50’s lack sufficient open interest & the $6.50’s will likely be out-of-the-money before expiration.
Tying It All Together
All-in-all, there looks to be many advantages to CRON stock in both the near & long-term.
Long-term focused investors will like CRON’s exposure to the cannabis industry, as well as their valuation metrics & balance sheet.
Short-term traders will like their current momentum, as well as the liquidity of their options market, which is signaling more bullish sentiment to come when comparing the open interest of calls:puts.
CRON stock is worth taking a closer look at to investors & traders alike.
*** I DO OWN COMMON SHARES OF CRON STOCK AS OF WRITING & PUBLISHING THIS ARTICLE ***