$TLRY Bull Wedge Risks the Loss of its Potency

In this tweet, I identified a bullish wedge which has formed on $TLRY. While the structure remains intact, and the bullish divergence on the RSI also remains, what we often like to see on wedges like this are exits closer to 75% of the way through the wedge. It was already running out of real estate when I pointed the structure out before, and though it has since pushed through the wedge, the move from the July 27th low does not look impulsive and we have reached the very tip of the structure.

TLRY

When wedges (and triangles, and other similar “contracting” structures) run all the way to their apexes, they often lose all of their force in the process and can simply fail from the structures. Because of this I am now cautious on this stock.

If this is going to have a real rally, it needs to do it really hard and really fast. Until then, it risks failing into a bearish channel instead of a bullish wedge.

If we only make nominal new lows, my expectation is for this to rally and hit those targets along with the other growth stocks’ breaking out of their respective wedges.


[UPDATE]: Since this has continued to erode further, as I suspected it might, I will file this under “Successful Calls.” I have updated this stock here.

TLRY


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