It was another quiet day for cannabis stocks overall, but I wanted to provide a quick update on TLRY because there were a few subtle but important developments worth noting. Above is a 10-minute chart of TLRY, with the SPY shown in the lower pane for comparison. Even on a relatively dull day for the group, TLRY managed to flash some early signs of relative strength.
If you look closely, you’ll notice that the SPY went on to make a lower low during the session, which is a clear indication of broader market weakness. TLRY, however, did not follow the market down. Instead, it managed to hold up and put in a higher low. When a stock diverges from the market like this, especially on a quiet day, it often suggests that buyers are starting to step in beneath the surface. My interpretation is that some accumulation took place today, even if it wasn’t immediately obvious from the volume.
Based on that relative strength, I added to my long position above the $10 level late in the session expecting some follow through to the upside. While that follow through didn’t materialize by the close, TLRY finishing the day at 9.90 doesn’t concern me. Pullbacks and pauses are normal, especially when a stock is in the early stages of trying to turn higher.
Shifting to the daily chart on the right, there’s another small but encouraging detail. Today’s close was the highest close TLRY has posted over the past 12 trading days. That may not sound dramatic, but it’s a positive sign that momentum is slowly starting to turn back up after a period of consolidation. These subtle changes are often the first clues before a more meaningful move develops.
Looking ahead, the next key level I’m watching is 10.10, which marks the high from last week’s earnings day announcement. If TLRY can push through that level, I think there’s a good chance we begin to see this stock work its way higher in the sessions ahead.
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