TLRY Shows Powerful Relative Strength: A Bounce Right on Schedule

 

Today was a very interesting day for TLRY, and that’s why I want to give an important update on where things currently stand. On December 3rd, I wrote about how TLRY was approaching a support area and how there was a real chance for a bounce to develop from that zone. Well, that’s exactly what may be starting to happen. If you look at the daily chart above on the right, you’ll see that TLRY bounced precisely from the gap area I highlighted last week. As I mentioned in that earlier post, once we entered that gap, I’d be watching closely for any signs of a reversal and today, we definitely got one.

What makes this even more compelling is that the setup was visible before TLRY actually rallied. If you follow my work, you would have been prepared for the possibility of a move higher. Let’s shift our attention to the 15-minute chart on the left, along with MSOS in the lower pane for comparison. Notice what happened, MSOS made a lower low below Thursday’s low, but TLRY did not. Instead, TLRY printed a higher low, which I’ve marked with the white trendlines. This type of behavior is a textbook example of relative strength, and honestly, this is exactly the kind of setup I live for.

So when the market opened this morning and TLRY refused to follow MSOS to new lows, I was already on high alert. The moment resistance was taken out, I was ready to buy. Once TLRY moved above 7.35, that was the trigger to jump in, with a stop tucked safely below today’s low. From there, the stock didn’t look back. TLRY exploded higher and closed near the highs of the day, confirming the strength I was watching play out beneath the surface.

But now that we’ve enjoyed a powerful intraday move, it’s time to zoom back out to the daily chart. We’re not out of the woods just yet. There’s still a trendline overhead that TLRY needs to break through to confirm a more meaningful shift in momentum. On top of that, there’s an overhead gap between $9.00 and $10.30 that could act as resistance once we get closer. I’d especially like to see volume increase as price approaches that zone, that would give me more confidence that buyers are serious and that this isn’t just a one-day pop.

For now, this was a textbook display of relative strength, a clean trigger, and a powerful close. Let’s see how things unfold over the next few days.