Has TLRY Reached Downside Exhaustion?

Good Tuesday Morning, MPTraders!  January 9, 2024-- Pre-Market Update: 

TLRY reported mixed earnings this AM, but the stock has reacted favorably nonetheless, as investors focus on the improvement in the non-cannabis revenue components rather than the stagnant pot business. 

Technically, to my way of looking at TLRY, after a devastating, relentlessly bearish near-4-year period from TLRY's ATH at 300 (2/10/21) into last year's low-zone of 1.50 to 1.60, perhaps TLRY has reached downside exhaustion and a sentiment condition scientifically referred to as "the beachball effect." Just maybe, negative news can no longer submerge TLRY's stock price because buyers are under the market of what is perceived to be a cheap stock reinventing itself while waiting for a bullish catalyst (in the form of federal legalization).

My 4-Hour Chart (see my Big Picture Daily Chart update in yesterday's posts or our Coverage List) shows that TLRY has popped about 6% so far in pre-market trading, but most significantly, the price structure is challenging key resistance lodged from its prior rally high of 2.52 to 2.65, which represents the dominant 13-month down trendline. If TLRY can claw its way above 2.65 on a closing basis, my technical work will trigger near-term upside reversal signals that will point toward a run at very consequential 11-month resistance that resides from 3.30 to 3.60 that if hurdled, will propel TLRY into a powerful bull phase. 

At this juncture, only a failure to hurdle 2.65 followed by a sharp decline beneath 2.10 will neutralize and delay my current outlook... Last is 2.47.

ES up next...