On September 13, 2018 when Tilray Inc. (TLRY) was trading at $118.00, we said:
“Below we outline the downside targets for both current price of $118 and $236 for when/if the stock doubles from the current price. The conservative downside target is fairly assured to occur in either case. From the $118 level, a decline to the $66.67 level would be a natural retest of the $77.89 level set on September 7, 2018.”
Since September 13, 2018, TLRY has increased as high as $300 on an intraday basis with a closing high of $214.06. From what we can tell, the runup has dissipated for now. On the downside, we see TLRY declining to the $102.92 target at minimum and it may achieve the the extreme downside target of $66.67 as outlined in our previous posting.
The nature of a parabolic rise is the manifestation of the price going to extremes. Speed Resistance Lines are the best measure of the extreme on the way down. It is the same going down as it is for going up. Therefore, we would not be surprised to see TLRY go as far down as $$42.42.