Above is a daily chart of TLRY, and as you can see, it remains one of the weaker cannabis stocks in the group. Even so, I think TLRY is sitting at a critical level right now. We’ve come all the way back down to the gap from August, the same gap that ignited a strong eight week rally. When a stock returns to a gap that previously launched a powerful move, I always pay close attention. Sometimes these gaps act like hidden support zones that most traders forget about.
At the moment, I have no position in TLRY. The trend is still clearly down, and I’m not in the habit of stepping in front of weakness just for the sake of “catching a bottom.” But if this gap level happens to hold and we see the right kind of candle, something decisive, like a bullish engulfing bar or a large bottoming tail, I might consider nibbling at a new long position. Volume would be especially important here. A meaningful reversal off this level needs heavy buying interest behind it, not just a weak bounce on light volume.
Ideally, before I commit to anything, I’d like to see the trendline I’ve drawn on the chart get taken out. That would tell me the sellers are finally losing control. For now, I’m simply on alert. TLRY is at a key level with the potential for a reversal signal, but I need to see the market confirm it. Until then, I’m watching closely and letting price action guide my next move.
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