iStock.com/Johny87 CRON Stock Is One of the Very Few Marijuana Stocks Still Poised for Gains
Marijuana stocks continue to be a favorite among retail investors. As a result, some investors are using the current weakness that has plagued this sector and the general stock market to pick up their favorite marijuana stocks at a perceived bargain.
The reason I say “perceived bargain” is that, from a technical perspective, there is still much to be desired. Many stocks in the cannabis sector have suffered technical damage, suggesting that their stock prices are likely to suffer further losses.
The good news is that not all stocks in this sector are on an equal footing. There are a few stocks in this sector that have been able to separate themselves from the pack, and they have not suffered the same technical damage as their peers.
Cronos Group Inc (NASDAQ:CRON) is an excellent example of a marijuana stock that has separated itself from its peers. It’s one of the few marijuana stocks that has not suffered any technical damage in the recent bout of market weakness. This suggests that, if this sector is set for a bounce, CRON stock will likely outperform its competitors.
For instance, the 50-day and 200-day moving averages remain in bullish alignment.
These moving averages are captured on the following Cronos stock chart. (Note: The chart says “CRON.TO” because the data dates back further on the Toronto Stock Exchange.)
Chart courtesy of StockCharts.com
This CRON stock chart captures a signal that is generated when the 50-day moving average and the 200-day moving average cross.
When the 50-day moving average crosses above the 200-day moving average, it generates a golden cross pattern. A golden cross suggests that a bull market has begun its development and that higher prices can be expected.