TLRY: Watching for a Reversal After Record December Volume

 

Has anyone seen TLRY’s record monthly volume? When I look at the monthly chart on the right above, the first thing that stands out is just how heavy trading was for the month of December. This wasn’t a subtle increase in activity, it was a clear surge in participation. To me, that kind of volume tells a very specific story. There is serious interest in this stock, and more broadly, in the cannabis space as a whole. This isn’t based on hoping or wishing for higher prices. When volume expands to this degree on a monthly timeframe, it’s a fact that larger players are involved. Big money doesn’t show up quietly.

What makes this even more interesting is what price has done alongside that volume. Shifting over to the daily chart on the left, Wednesday marked the eighth consecutive day of a lower daily high, pushing price directly into a significant gap support zone. That’s an area I’ve been watching closely. Persistent lower highs often indicate sustained selling pressure, but when that pressure leads price into well-defined support, my attention shifts toward the possibility of a reversal rather than continuation.

There are also a few contextual factors that add weight to this setup. Seasonality is one of them. Historically, the cannabis stocks tend to perform better during January and February, and that tailwind is now directly in front of us. In addition, there’s the potential for a headline catalyst if we hear from Pam Bondi in the coming weeks. While I never rely on news alone, I do respect the way catalysts can act as accelerants when a stock is already at an inflection point.

Another subtle but important detail is the narrowing of the daily ranges as TLRY approaches this support zone. Volatility is contracting, which often signals a slowing of downside momentum. That kind of behavior frequently shows up ahead of meaningful turns, especially when combined with heavy volume and key support.

All things considered, I’m not making predictions, but I am paying attention. TLRY has enough elements lining up here to make it worth keeping on your radar for a potential long entry. Now it’s just a matter of seeing how price responds from these levels and letting the market confirm or deny the thesis.

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