TLRY rockets, gaining $0.35 (6.62%) within a single day on high volume
Tilray Inc. (TLRY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TLRY ended Wednesday at 5.64 surging $0.35 (6.62%) on high volume, strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on August 4th, TLRY actually lost -6.78% on the following trading day. Closing above Tuesday's high at 5.51, Tilray confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (TLRY as at Sep 16, 2020):
Wednesday's trading range has been $0.73 (13.64%), that's far above the last trading month's daily average range of $0.34. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TLRY.
Buyers managed to take out the key technical resistance level at 5.56 (now S1), which is likely to act as support going forward. After having been unable to move lower than 5.27 in the prior session, the stock found buyers again around the same price level today at 5.31.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Tilray. Out of 26 times, TLRY closed lower 65.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 69.23% with an average market move of -5.10%.