In yesterday’s trading session, Cronos Group shares slid by 1.21 to close the market at $3.27. The drop came amidst a renewed upward push which had seen the company’s stock price surge by 11 per cent the previous day.
Cronos Group is slowly becoming a contender for good investment opportunities for people looking to invest in the marijuana industry. Even with yesterday’s trading session dropping by a percentage point, Cronos remained competitive, with some of its competitors, such as Canopy Growth Corp, falling by 9 per cent.
The company, which prides itself on being an innovative global cannabinoid company dedicated to research, technology, and product development, has a good chance of continuing to grow in the markets. The Cronos share price has also looked aggressively bullish throughout July and is up by 15 per cent.
However, the company has been plagued with a major problem, its inability to turn a profit. Despite being in an aggressive bullish trend, this has made it difficult for Cronos to compete on other fronts with its competitors. It has also struggled to make inroads in the US market.
Based on recent data, Cronos’ sales showed huge improvement, but most of its market was in Canada. These challenges have also kneecapped its growth, where it deals with mostly hemp-derived cannabidiol products, which aren’t doing well in the US markets.
Looking at the chart below, we can see that, despite yesterday’s price drop, Cronos was already in an aggressive bullish move that started on June 14th. The chart also shows that, in the late hours of the session, the prices were aggressively bullish.
Therefore, I expect the share price to continue growing throughout the coming days. There is also a high likelihood that we may see prices continue to rise and hit the $4 price level. My analysis will only be invalidated should the prices move and hit yesterday’s price low of $2.96.
This post was last modified on Jul 22, 2022, 14:36 BST 14:36