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Jun 17, 2019
High probability bearish signal on Cronos Group (CRON)

High probability bearish signal on Cronos Group (CRON)

Cronos Group (Nasdaq: CRON) is a rather unique company. It is considered a healthcare company as far as its sector designation, but it considers itself to be an investment firm that invests in medical marijuana companies. Cannabis investing has been a prominent storyline over the last few years and that has helped the stock move up sharply in the last two years.

Despite the rally, the stock has been trending lower in the last four and a half months. A trend channel has formed that defines the cycles within the overall trend. This channel is different in the way that I drew it because it was the lower rail that stood out to me first. I connected the lows from February, March, April, and May to form the lower rail. I then drew a parallel line and used the high from March as the starting point. What we see on the chart below is that the stock just hit the upper rail of the channel and then turned lower.

We see that the stock was overbought based on the daily stochastic readings, but the indicators turned lower and made a bearish crossover on June 13.

The Tickeron Trend Prediction Engine generated a bearish signal on the same day as the stochastics crossover. The signal showed a confidence level of 89% and past predictions on the stock have been successful 88% of the time. The signal calls for a drop of at least 4% over the next month.

Related Ticker: CRON

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


CRON in downward trend: price may decline as a result of having broken its higher Bollinger Band on September 22, 2026

CRON broke above its upper Bollinger Band on September 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 44 similar instances where the stock broke above the upper band. In 35 of the 44 cases the stock fell afterwards. This puts the odds of success at 80%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on October 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CRON as a result. In 82 of 105 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.

The Moving Average Convergence Divergence Histogram (MACD) for CRON turned negative on September 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 58 similar instances when the indicator turned negative. In 42 of the 58 cases the stock turned lower in the days that followed. This puts the odds of success at 72%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRON declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

Following a +1.25% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRON advanced for three days, in 170 of 230 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.

The Aroon Indicator entered an Uptrend today. In 109 of 127 cases where CRON Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 86%.

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. CRON’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 47 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.176) is normal, around the industry mean (43.873). P/E Ratio (17.947) is within average values for comparable stocks, (141.710). Projected Growth (PEG Ratio) (0.020) is also within normal values, averaging (2.152). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (6.993) is also within normal values, averaging (178.797).

The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CRON’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.

Notable companies

The most notable companies in this group are Teva Pharmaceutical Industries Limited (NYSE:TEVA), ZOETIS (NYSE:ZTS), Elanco Animal Health (NYSE:ELAN), Bausch Health Companies (NYSE:BHC), BioCryst Pharmaceuticals (NASDAQ:BCRX), Tilray Brands Inc. (NASDAQ:TLRY), Canopy Growth Corp (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), Journey Medical Corp (NASDAQ:DERM).

Industry description

A generic drug contains the same chemical substance as a drug that was originally protected by patents. Generic drugs are generally sold at cheaper price points, compared to name-brand pharmaceuticals, after patents for the more expensive drugs lapse. The generic drug industry has created a major market, thanks to the lower pricing. According to the Center for Justice and Democracy at New York Law School, 80 percent of all drugs prescribed are generic, and generic drugs are chosen 94 percent of the time when they are available. But their manufacturers must be able to prove to the FDA that they can be effective substitutes for the original drugs. Some of the major generic drug makers include Zoetis, Inc., Allergan plc and Mylan N.V.

Market Cap

The average market capitalization across the Pharmaceuticals: Generic Industry is 4.13B. The market cap for tickers in the group ranges from 2.12K to 68.49B. MKGAF holds the highest valuation in this group at 68.49B. The lowest valued company is CANQF at 2.12K.

High and low price notable news

The average weekly price growth across all stocks in the Pharmaceuticals: Generic Industry was -5%. For the same Industry, the average monthly price growth was -6%, and the average quarterly price growth was 22%. RGC experienced the highest price growth at 17%, while LQDA experienced the biggest fall at -62%.

Volume

The average weekly volume growth across all stocks in the Pharmaceuticals: Generic Industry was 44%. For the same stocks of the Industry, the average monthly volume growth was 55% and the average quarterly volume growth was 1%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 63
Price Growth Rating: 58
SMR Rating: 86
Profit Risk Rating: 84
Seasonality Score: 1 (-100 ... +100)
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General Information

pharmaceutical, medical marijuana, cannabis

Industry PharmaceuticalsGeneric

Industry
Pharmaceuticals Other
Address
4491 Concession Road 12
Phone
+1 416 504-0004
Employees
610
Web
https://www.thecronosgroup.com
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