This setup cleared two of our three filters

What the system saw

CRNX touched its 20-day moving average today — and held. That's the entire setup, and it's enough. When a stock sitting in the 96th percentile of relative strength over the last 63 days dips to a key support level and refuses to crack it, the Relative Strength Engine takes notice. We're in at $84.16, 62 shares in the paper account, putting roughly $5,218 behind this one. The conviction score came in at 71.8 out of 100 — solid, not a screamer, but enough to act on.

Why our Relative Strength Engine liked it

The logic isn't complicated: strong stocks that pull back to support tend to resume their trend. CRNX has been outrunning the broad market for the better part of three months, and the 20-day MA is sitting right at $83.81. Today's low was $83.96 — the stock kissed the average and bounced. Clean, controlled, quiet. That's exactly the kind of tight dip the Relative Strength Engine was built to find. Volume dried up into the pullback too, which is what you want to see. No panic selling. Just a reset before the next move. One honest caveat: CRNX is burning cash. Negative net margins, negative ROE, a Piotroski F-Score of 2 out of 9 — this is not a value stock by any stretch. DCF fair value lands deep in negative territory. Analyst consensus sits at Buy, with an average target of $84.86 — which is roughly where it's trading right now. None of that changes the short-term chart read. But it's worth knowing what's under the hood before you're in the position.

The trade plan

Entry is $84.16. Stop is $83.45 — that's $0.71 of risk per share, tucked just below today's low and the 20-day moving average cluster. The system's target is $85.59, a clean 2R move from entry. Tight, defined, no guesswork. If CRNX loses $83.45, the thesis is broken and we're out — no debate.

Position size: our paper account is putting about $5,218 (62 shares) into this trade, sized to risk roughly $44 if our stop is hit. This is what the system committed in its paper account — not a suggestion of how much you should put into any trade.

What could go wrong

The setup is tight by design, but a few things could unwind it. CRNX is sitting at 99.7% of its 52-week range — there's not much air above it before you're in price discovery with nothing nearby to lean on. Weak fundamentals mean any negative news could hit harder than it would on a healthier name. And with the broad market barely moving — SPY up just +0.02% on the day — there's no macro tailwind helping this along. We're threading a narrow needle, and the numbers say so.

One more thought before we go

CRNX is day 3 in the account and up 0.2% — nothing to celebrate yet, but the position is on the right side of the line. The real question now is whether this 20-day moving average hold builds into something or just gets tested again. One way or another, we'll know soon.