Chart of the week: A stock with potential to double

TL;DR

Tilray, a Canadian pot stock in the legal marijuana business, has shown a promising rise after a significant crash. The recent price action, along with a solid support line and momentum divergence, suggests a potential for a strong upward break and a rally towards previous highs.

Transcript

hello it's John Burford with chart of the week for June the 24th Monday and this week I'm covering tilray tilray is a Canadian pot stock they're called pot stocks they're in the legal marijuana business and tilray had its IPO last year and right away it's engaged in a exponential rocket that took it right up to the $300 level and of course that was... Read More

Key Insights

• 😮 Tilray experienced an unsustainable exponential rise followed by a crash, causing losses for those who bought at the peak.
• 🛝 There has been a counter-trend ABC recovery and subsequent slide down in the stock's price.
• 🫥 Recent price action shows a promising move up, supported by a solid support line and a five-wave pattern.
• ❓ The momentum divergence indicates reduced selling pressure and a potential bullish momentum.
• 😮 Bitcoin's similar chart pattern, with a rocket rise and subsequent rally phase, suggests that Tilray could reach previous highs.
• ✋ The target of $50 has been reached, indicating a potential upward break towards higher price levels.
• 👋 Short-term analysis suggests a wave 3 and possible pullback for wave 4 before another strong move up.

Questions & Answers

Q: What is Tilray and its history in the stock market?

Tilray is a Canadian pot stock in the legal marijuana business. It experienced an exponential rise to $300 after its IPO, followed by a crash to less than $100.

Q: How has the recent price action for Tilray been analyzed?

The recent price action for Tilray has been analyzed using a 4-hour chart. It shows a solid support line, accurate touch points, and a five-wave move indicating an ending wave.

Q: What is the significance of the momentum divergence in Tilray?

The momentum divergence in Tilray suggests that the selling pressure is drying up, which is a positive indication for potential upward movement in the stock.

Q: Is a strong rally possible for Tilray in the near future?

Yes, a strong rally is possible for Tilray. The current price action, supported by a solid support line and a potential wave count, suggests the stock could aim for previous highs of $300 or potentially reach the $150 range.

Summary & Key Takeaways

• Tilray had an exponential rise to $300 after its IPO, followed by a crash to less than $100, causing losses for those who bought at the peak.

• There has been a counter-trend ABC recovery and a subsequent slide down, with minimal interest in the stock as a growth opportunity.

• Recent price action shows a promising move up, supported by a solid support line, five-wave pattern, and a momentum divergence indicating reduced selling pressure.