Shares of cannabis-related companies have surged sharply in recent days, as what had previously been market rumours received official confirmation.

According to media reports:
→ The US President confirmed his intention to reclassify cannabis as a Schedule III substance, which would designate it as less dangerous. Such a move could boost funding for the cannabis industry and related scientific research, while also easing criminal penalties. “We are looking at this very carefully,” Trump told reporters in the Oval Office.
→ The White House’s decision to reclassify cannabis would also remove the impact of Section 280E of the US tax code, which has limited profitability for companies in the cannabis sector.

Among the top gainers was shares of Canadian firm Cronos (CRON), which climbed to its highest level since late 2022 yesterday.

Technical Analysis of CRON Shares

Technical analysis shows that in the second half of 2025, CRON shares have been trending higher, forming an ascending channel. Within this structure:

→ the channel median acted as resistance between 9 and 11 December before being broken by strong buying pressure;
→ yesterday, CRON formed a bearish candle after several days of gains;
→ the high of that candle is close to the upper boundary of the channel;
→ the RSI is moving lower after peaking above the 80 level.

Trump’s remarks may have triggered a wave of speculative buying, but the decision has not yet been formally signed. As a result, buyers of CRON shares (and other cannabis stocks) may be at risk of being caught in a trap. As emotions fade, CRON’s share price could drift back towards the channel median, where supply and demand tend to rebalance.

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