CRON Earnings Play
Lots of hype and positive sentiment should move all MJ names to the upside into the following weeks, CRON is no exception. CRON is set to post earnings pre-market on Friday, 2/22/19. As of Monday, 2/18/19 according to the OPTIONS chain, speculators are more interested in the CALLS @ $23.00 strike price with volume at 1742 as open interest is at 1665. As of the date of this writing CRON is a mere 16.42% from All Time Highs with just a few levels of resistance to punch through. Looking at the daily chart those levels are $21.89, and the physiological levels, $22.00, 23.00 and $24.00 respectively. If you look at the weekly its been nothing but green candles from October 2018 (Canadian Legalization), then the Earnings report on November 13 (which were not that strong) all the way up to week before last when a red candle printed. Revisiting that previous red candle week we see that we gapped up at the open into blue sky breakout and made it all the way to $25.10 ATH just after lunch time. At that point consolidation was in order settling down to put in a lower low. With the exception of a few outlying lows, since February 6 we have been in a tightening range on the 1 Hour chart moving into this week indicating to me we are about to pop one way or another.
Outlook: Moving into the earnings to be reported pre-market this Friday we can't ignore the increased selling into close last week. RSI levels are cooling off, and by zooming into the 5 minute chart we can see we have some work to do at the open tomorrow 2/18. We have solid support down at $21.22 and all indicators reflect a possible gap up at the open and all eyes will be on how much resistance we can bust through by the time the algos figure out a direction for the day. For me I will be eying the MJ sector overall strength (CGC, ACB, TLRY and MJ ETF) to gauge sector strength and closely watching the SPY as it continues to provide tailwinds with its continuous strength. The play I'm looking for will be to buy cheap Calls if we fall through support. I will look to buy the $22.50 Strike Calls into strength or perhaps scoot up the chain to the $24.5 strike if we break through $23.92 resistance.
Full Disclosure: At the time of this writing I do not have a position in CRON. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.
Outlook: Moving into the earnings to be reported pre-market this Friday we can't ignore the increased selling into close last week. RSI levels are cooling off, and by zooming into the 5 minute chart we can see we have some work to do at the open tomorrow 2/18. We have solid support down at $21.22 and all indicators reflect a possible gap up at the open and all eyes will be on how much resistance we can bust through by the time the algos figure out a direction for the day. For me I will be eying the MJ sector overall strength (CGC, ACB, TLRY and MJ ETF) to gauge sector strength and closely watching the SPY as it continues to provide tailwinds with its continuous strength. The play I'm looking for will be to buy cheap Calls if we fall through support. I will look to buy the $22.50 Strike Calls into strength or perhaps scoot up the chain to the $24.5 strike if we break through $23.92 resistance.
Full Disclosure: At the time of this writing I do not have a position in CRON. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.
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