Don't Ignore This Chart

Tilray Goes from Most Exciting to Most Boring

 | 

Tilray (TLRY) listed on the Nasdaq at $17 with an IPO in July and promptly surged above $300. The stock then worked its way below 100 over the next few months and managed to stabilize in the 65 to 80 zone this year.  

The chart below shows the Bollinger Bands contracting to their narrowest since the stock began trading. Thus, the squeeze in on as volatlity contracts. The distance between the upper band and lower band is less than 8 points and BandWidth is below 10%. BandWidth equals upper band less lower band divided by middle band.

The Bollinger Band squeeze alerts traders to be ready for a move, but it does not provide any directional clues. Chartists must simply wait for the break. A break above the upper band would be bullish, while a break below the lower band would be bearish.

The next chart shows TLRY over the last three months and analysis points to a downside break. First, note that several cannabis stocks were higher over the last few days, but Tilray moved lower. Second, the stock fell sharply in the second half of January and then consolidated with a triangle. Tilray broke below the triangle line on Monday and this signals a continuation lower.

Keep in mind that Cannabis stocks are quite volatile and Tilray is one of the most volatile. Anything could happen. The triangle highs mark resistance and a break above 83 would call for a reassessment of this bearish analysis.


On Trend on YouTube

SPY Stalls as Small-caps Edge Lower

  • Small-Caps Lead Pullback.
  • High Flyers Take a Breather.
  • QQQ Heavyweights Come to Life.
  • HealthCare Providers weigh on XLV.
  • Banks, Bollinger Bands and Bandwidth.
  • Stocks to Watch: MLM, VMC, IRM, GLUU.
  • Click here to Watch


- Arthur Hill, CMT

Senior Technical Analyst, StockCharts.com

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill


Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart to be notified whenever a new post is added to this blog!
comments powered by Disqus