Above is a daily chart of TLRY, and as you can see this stock is now pulling back. I continue to view this pullback as a retracement within what I believe is a new bull market, not the start of something more sinister. In environments like this, my focus shifts from chasing strength to identifying high quality pullbacks into logical areas of support.
One level that immediately stands out on TLRY is the $10.00 to $10.70 zone. This area represents the stock’s first real test of support since the recent push higher, and first tests are often the most important. What makes this zone especially compelling is its history. You can see on the chart where this area has previously acted as both support and resistance, marked by the arrows. When former resistance turns into support, I pay attention.
Adding to the importance of this level is the fact that it lines up with the bottom of that large green candle from a few days ago. Big expansion candles often leave behind footprints, and the low of that candle becomes a reference point for big money that participated in the move. When multiple forms of support converge, it creates a level that deserves respect.
That said, I’m not interested in blindly buying just because price enters a zone. Patience is part of my edge. I want to see evidence that buyers are stepping back in. That could come in the form of bottoming tails, bullish engulfing patterns, or clear relative strength versus the market. Those signals tell me demand is asserting itself again.
Until I see that confirmation, I’m content to stay the course and keep my powder dry. Opportunities come and go, but disciplined entries at well-defined levels are what keep me on the right side of the trade over time.
No comments:
Post a Comment