Cronos Group (NASDAQ: CRON) has been on a rampage the past couple weeks but we are finally starting to see some topping price action. We are currently looking at a potential blowoff top in progress with a huge volume spike on Monday accompanied by a long topping wick.
This signifies strong selling came in at the end of the day and from a technical standpoint indicates a potential reversal. RSI is in the way overbought zone and is currently sitting at 89.18 with anything over 70 representing that it is buy heavy. Now you could interpret this a couple different ways.
You can read this as a buy with heavy momentum and strong buying OR you can see this as a contrarian play given the overbought conditions and heavy selling volume on Monday. Given the current situation this looks like we are due for a pullback and will likely see some continuation selling from yesterday afternoon.
How are you trading this stock? Post a comment below!