TLRY Tilray Weekly Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

Cheech and Chong would say that pot stocks have gone up in smoke this year. The vape scandal does not help; it creates a negative vibe across the industry. Organizations against legalizing pot are touting it as a dangerous substance, as usual. The majority of Americans, however, realize marijuana is not harmful and actually has many medicinal benefits. Two-thirds of the US population are in favor of legalizing pot. There were horror stories that states such as Colorado would experience serious trouble with crime and car accidents if pot was legalized. You do not hear these ramblings anymore because crime has actually fallen, as well as car accidents, since pot became legal in the state.

These arguments for and against marijuana will continue but likely become irrelevant over the next years as pot is legalized. Obviously companies such as Tilray will benefit greatly over the long term.

This year, however, is a blood bath with TLRY price peaking at 3 hundo and dropping to 20 a -93% crash. Traders loved the IPO as it rocket launched out of the gate. Investors were smoking doobies and fatty's buying Tilray stock like madmen. They were too high and the price was too high so now they drown their troubles in booze as they shun pot.

As a speculator, you keep an ear and eye on sentiment. Nobody wants to own these pot stocks anymore. The short interest is at historic levels. Aunt Harriet, as she sips her third glass of wine this morning, says no one should be smoking it let alone buying stock in it. The news stories are negative across the board. Tilray is beaten like a rented mule.

But within that negativity is opportunity. Keystone posted a TLRY chart a couple weeks ago and the idea was to watch for the bottom potentially at hand. The stochastics are oversold agreeable to a rally going forward. Ditto the RSI that has now made three touches on that low 30% bar--watch this closely since a slip lower will create a couple more weeks of softness. Keystone's 80/20 Rule says 2's typically lead to 8's, and visa versa, so the breach of 22 hints that 18 may be on the table (the chart, however, is very positive and would not expect this).

The falling green wedge pattern is bullish and the launches out of these patterns can be sudden and sharply higher (the opposite of a rising wedge which is an ominous pattern). The green lines show universal positive divergence across all indicators wanting to see a move higher. The ADX shows that the move lower this year was a strong trend lower but it petered out in the summer in favor of a bottoming process. The red Aroon line is pegged at one hundo and the green line near zero both with nowhere to go but down and up, respectively, which means price will go up.

The lower band is violated so the middle band at 35.35, and falling, is on the table, also the upper band at 54. This is speculation on full display. If the massive shorts begin covering, the stock may rocket launch. As Clint Eastwood (aka Dirty Harry) would say, "Well, punk, do you feel lucky today?" Keystone is a buyer of TLRY going forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Saturday Morning, 10/26/19:  TLRY receives the possie d launch gaining +11% this week. Price tagged 25.68. That was fun. Yes, sir, may I have another.