Cronos Group Inc (CRON)

[Nfreed31]

CRON is currently overbought on the fundamentals and technicals.

Lets check the technicals
Monthly RSI @ 75.07
Weekly RSI @ 70.62
Daily RSI @ 76.9

So for long term entries we are too overbought and due for consolidation on the longer term time frames.

There is also bearish divergence on the RSI daily chart for a bigger picture point of view and for a midterm point of view (swing trades) the 1hr & 4hr chart both are showing bearish divergence on the RSI.

The massive run up on the daily chart cannot be sustained and we are due for some long term consolidation (multiple days to weeks). Another thing to note is the daily candle stick on Friday. It's a bearish hanging man reversal candle.

As for the fundamentals, CRON right now is trading at a PE ratio of 303 and a EV of 266x. It is now the most overvalued company in this space.

My consensus on this stock is that in the mid term (weeks) it is too overbought on both the technicals and fundamentals. If anyone is considering selling now would be a good time to start shaving off or exit the position entirely, exert patience, and rebuy in a few weeks to months at a cheaper price.