Why Shares of Cronos Group (CRON) Slumped Today

06:15 02/06/2019

Pot stocks may have pulled back today.

But consider it a gift, a buying opportunity.

Remember, not only did Canada recently approve its recreational use, corporate America is quickly waking up to the multi-billion-dollar opportunity. Plus, even more U.S. states are looking to approve its medicinal and/or recreational use.

One of the biggest pot stocks -- Cronos Group CRON  fell 10% on the day.

All on a downgrade from a buy rating to a hold rating at GMP Securities. However, before you run off and panic, there were no real reasons for the pullback. The analyst just felt the stock needed a breather after running from $10.25 to $21.83.

In a note, the analysts say the downgrade wasn’t based on any fundamental issues. Instead, they believe the company’s future looks promising.

Analysts just felt the stock was overdue for a pullback.

Technically, they’re right. As you can see in this one-year chart of CRON, it is overbought at its upper Bollinger Band (2,20), with over-extensions on RSI, MACD, and Williams’ %R.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read