Why Cronos Group Stock Price Might Trade Above $3.6 Soon

Summary:

Cronos Group stock price closed yesterday’s trading session up 2.42 per cent to $2.96, in what was an overperformance of the NASDAQ

Cronos Group stock price closed yesterday’s trading session up 2.42 per cent to $2.96, in what was an overperformance of the NASDAQ Composite Index, which went up by 2.14 per cent. Cronos Group also outperformed the Dow Jones Industrial Average, which went up by 1.4 per cent during the session.

However, yesterday’s gain in the market interrupted a long-term bearish trend that had seen Cronos Group dropping by 15 per cent in just the past 10 trading sessions. The rise in price was also a mixed fortune when compared with Cronos Group competitors. For instance, Canopy Growth Corp, WEED, surged by 4.66 per cent, outpacing Cronos price surge by almost double.

Luckily for Cronos, despite the past few trading sessions’ struggle in the markets, the Cannabis industry has continued to grow across the US and Canada, which has meant growth in Cronos Group revenue.

According to the latest financial report, released early last month, the company enjoyed a strong second quarter, which saw its consolidated net revenue surging by 48 per cent year-over-year to $23.1 million. The report also indicated other markets they were penetrating, including Israel, where the net revenue stood at $7,2 million, a 212 per cent increase year-over-year.

Cronos Group Stock Price

All the fundamental analysis points to potential growth of Cronos group stock price for the long-term. With the company’s net revenue going up in almost all markets it operates on, I expect the performance to translate into the stock market.

However, looking at the chart below, the company has struggled in the markets for long. With prices having dropped by 15 per cent in the past 10 trading sessions before yesterday, it is likely that, in the next few trading sessions, the company will mount a comeback and possibly recover from previous losses. My Cronos group stock price prediction expects it to hit and trade above the $3.60 supply zone in the coming trading sessions. This will only be invalidated by trading below $2.65.