Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Cannabis stocks got a boost on Tuesday after Sen. Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) announced they will hold a press conference to discuss the Cannabis Administration and Opportunity Act. The proposal is intended to lead to a bill that could protect small cannabis businesses and allow them access to obtain financing from banks. It could also help pave the way toward federal legalization.
Tilray, Inc. (NASDAQ:TLRY) and Canopy Growth Corporation (NASDAQ:CGC) shot up 7.5% and 4.6%, respectively, before slamming into resistance levels and fading. Tilray bumped into a resistance level at $17.50 while Canopy Growth slammed into the 200-day simple moving average on the daily chart and wicked from it.
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Profit takers may be waiting to hear from the specific details of the draft before hopping back into positions, but on Tuesday morning a number of options traders decided to front-run the press conference and one trader purchased a single order of call contracts worth $203,830. The trader paid above the ask for 935 contracts at $2.18 apiece.
Tilray has a clear long-term trendline for both the bulls and bears to use as a guide for their trades.
See Also: How to Buy Tilray Stock Right Now
The Tilray Chart: Tilray has been holding above a lower ascending trendline since its Sept. 24, 2020 low of $4.41. On Thursday, Friday and Monday Tilray tested the trendline again and it held as support. For the bulls in a position, a break below the line can be used as a stop, and for the bears a break below the line can be used as an entry signal.
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Tilray has heavy resistance at the $17.50 mark not only because of prior price history, but because the level currently aligns with the resistance of both the 21-day exponential moving average (EMA) and the 200-day simple moving average. On Tuesday, Tilray tested the area and when the stock was unable to break through sellers came in and took profits.
Tilray was able to briefly pop over the eight-day EMA but fell back below it. The first hurdle for the bulls will be getting a daily close above the eight-day EMA which could then become support and a launch pad to tackle the $17.50 area.
The news of the draft proposal also caused above average volume to enter into Tilray’s stock and because the volume leans to the bulls a further move to the upside could be in the cards.
See Also: Tilray Continues Urging Shareholders To Approve Dilution
Bulls want to see sustained bullish volume pop Tilray over the eight-day EMA and then for it to regain the $17.50 level. If it can regain the level as support, it could trade back up toward $20.
Bears want to see bearish volume drop Tilray below the ascending trendline and for continued bearish momentum to flush the stock below support at $15.71. If Tilray’s stock were to lose the level it could drop down to $13.41 before finding another support area.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.