TLRY closes higher for the 2nd day in a row
Tilray Inc. (TLRY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TLRY finished the week 32.05% higher at 10.26 after gaining $0.61 (6.32%) today on high volume, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 10.26 marks the highest recorded closing price since March 5th. Trading up to $1.16 lower after the open, Tilray managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 2nd, TLRY actually lost -15.18% on the following trading day. Closing above Thursday's high at 10.07, the stock confirmed its breakout through the previous session high after trading up to $0.62 above it intraday.
Daily Candlestick Chart (TLRY as at May 22, 2020):
Friday's trading range has been $1.79 (17.79%), that's far above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TLRY.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Hanging Man.
After trading down to 8.90 earlier during the day, the market bounced off the key technical support level at 9.75 (S1). The failure to close below the support might increase that levels importance as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 7.97.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Although 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 114.51%.