TLRY and the Cannabis Sector: Watching the Sixth Lower High for a Potential Long Entry

 

Another down day in the cannabis sector, and once again we’re seeing a lower high. Lately, my posts have been focused on these lower highs, stalking them for a potential entry, but so far nothing has triggered. I like to wait for the setup to align perfectly, and patience is a big part of my strategy. Right now, one of the setups I’m really watching closely is TLRY. Looking at the daily chart, you’ll notice this is the sixth lower high, which is significant. It tells me the stock has been in a controlled pullback, and that control is exactly what I like to see when positioning for a potential turn.

Another detail that stands out is today’s narrow candlestick body compared to previous days. The smaller range signals a slowing of momentum, which in my experience often precedes a reversal. When the volatility contracts and the selling pressure eases, it can set the stage for an upward move once the right trigger occurs. That’s what I’m looking for here,  a clean, controlled pullback that sets up for a long entry.

My game plan is simple: I want to watch for today’s high to be taken out before committing. For TLRY, that means a break above $9.79. If that happens, I’ll not only enter but also look to add to my position. It’s all about waiting for confirmation rather than jumping in prematurely.

While TLRY is my top watch, several other cannabis stocks are showing similar setups. MSOS, ACB, and CGC to name a few, all have pullbacks that are worth monitoring for the same type of entry. But there’s something about TLRY that makes it stand out, the clean structure of the pullback, the clear sequence of lower highs, and the contracting range all give me a level of confidence that’s hard to ignore.

I’m not forcing a trade. I’m simply watching for the trigger, letting the market show me the path, and being ready to act when the setup confirms itself. That discipline, waiting for the right signal  is what keeps me in control and allows me to trade with the odds in my favor. TLRY could be the first to move, and when it does, I’ll be ready

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