TLRY breaks above 50-day moving average for the first time since November 7, 2018
Tilray Inc. (TLRY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TLRY ended the week 37.24% higher at 96.00 after surging $15.60 (19.4%) today on high volume, strongly outperforming the S&P 500 (-0.01%). This is the biggest single-day gain in over two months. Today's close at 96.00 marks the highest recorded closing price since December 10, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TLRY as at Jan 11, 2019):
Friday's trading range has been $14.50 (15.68%), that's far above the last trading month's daily average range of $8.04. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for TLRY.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Tilray managed to close above the 50-day moving average at 93.30 for the first time since November 7, 2018. After spiking up to 103.68 during the day, the market found resistance at the 100-day moving average at 102.44.
Crossing above the upper Bollinger Band for the first time since September 19, 2018, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 74.93 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on September 18, 2018, TLRY gained 38.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test December's nearby high at 109.35.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Tilray. Out of 1 times, TLRY closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 35.06%.