Just a quick update on TRLV.
Back in late July, I was becoming bullish on TRLV because of its relative strength. At the time, what caught my attention was that TRLV was holding up considerably better than many of the other cannabis names, and that relative strength was telling me something. Since then, the stock has continued to move higher, and it is still outperforming a large portion of the cannabis sector.
Today, however, was particularly interesting.
As you can see in the daily chart above, TRLV had a very bullish day. Not only did the stock move higher, but the volume really stood out. In fact, today's volume was the highest volume we've seen on a bullish candle since last December. Whenever I see a strong price move accompanied by unusually heavy volume, I pay attention. It suggests that there is considerably more participation behind the move than we've seen on many of the previous advances.
There was also some interesting news today that could potentially add another layer to the story.
The company announced that TRLV had been added to the S&P Total Market Index and the S&P Completion Index. For a cannabis company, I think that's particularly encouraging. Trulieve has already made the transition to the NYSE, and now having the stock included in these broader S&P indexes gives it another level of visibility within the investment community.
Of course, index inclusion doesn't guarantee that the stock will continue higher. But when I combine today's news with the price action, volume, and the relative strength I've been watching since July, I think the setup is becoming increasingly interesting.
And there's something else on the chart that has my attention.
TRLV appears to be approaching a breakout from a roughly three month cup and handle formation. I've been watching this pattern develop, and we're getting close to the point where it could finally resolve itself to the upside.
For me, 12.76 is the number to watch.
A move above 12.76 would confirm that the stock is breaking out of the pattern and could open the door to considerably higher prices in the weeks ahead. That's why I'm watching this level closely. The longer TRLV has spent building this formation, the more significant a confirmed breakout could potentially become.
What I find most interesting is that the technical picture was already improving before today's news. Now we're getting strong volume, continued relative strength, a potential cup and handle breakout, and increased index visibility all at roughly the same time.
That's certainly enough to keep TRLV on my radar and one of my top holdings.
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