Inverse Head & Shoulder 4Hr
Updated
TLRY 4Hr chart showing the inverse head & shoulder pattern, with 200MA acting as the neckline. During the last few days,
it has been showing contraction in volatility, which was showing on lower timeframes, but not on the 4H chart since it bottomed @ 13.41. This indicates that sellers are being absorbed by buyers.
Contraction in volume has been showing since the bottom with every rise, the rise comes with volume, then followed by a drop with contracting volume. The chart keeps making higher highs & higher lows. Which is an indication that only the weaker hands that hold the least are selling, and the big holders are coming in.
The company has dropped a few new products since the merger, which could be a catalyst for more sales & better earnings for next quarters. Federal legalization seems to be imminent, but no clear deadline. There are news about state legalization every other day. So Fundamentally, the company is going in the right direction. And the stock should reflect the future of the company.
So, we are on the right track both technically & fundamentally. Unless there is a major catalyst that brings the whole market down (The return back to normal; Increasing rates to control inflation), then we are going to continue higher.
it has been showing contraction in volatility, which was showing on lower timeframes, but not on the 4H chart since it bottomed @ 13.41. This indicates that sellers are being absorbed by buyers.
Contraction in volume has been showing since the bottom with every rise, the rise comes with volume, then followed by a drop with contracting volume. The chart keeps making higher highs & higher lows. Which is an indication that only the weaker hands that hold the least are selling, and the big holders are coming in.
The company has dropped a few new products since the merger, which could be a catalyst for more sales & better earnings for next quarters. Federal legalization seems to be imminent, but no clear deadline. There are news about state legalization every other day. So Fundamentally, the company is going in the right direction. And the stock should reflect the future of the company.
So, we are on the right track both technically & fundamentally. Unless there is a major catalyst that brings the whole market down (The return back to normal; Increasing rates to control inflation), then we are going to continue higher.
Note
The stock has certainly completed stage 4. We are yet to exit stage 1. Price crossing the ~$50 mark should confirm that we have completed stage 1 & that stage 2 is definitely on the way with more long term upside potential.Note
AMC is one stock to watch if you are in TLRY. When AMC reaches the bottom of its correction, TLRY may reach the top of its uptrend. That is due to flow exiting from one hype stock to the other. That is if the price action follows the February run. AMC corrected 50% so far, the correction could bottom for now and create a base around 61.8%. By that time, TLRY would have made its top. This will all clear up by end of June.Note
EWT Analysis shows that we are in a wave 4 which can drop as low as 17, to then complete the head & shoulder and reach the $30 level
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