3 Cannabis Stocks Looking For Support
Cannabis stocks have been the talk lately as recreational legalization advances in New York.
Tilray Daily Chart Analysis: The stock looks to be in a channel between the price levels of $20 and $35.
The $20 level was a previous resistance that held as support; $35 is a place the stock struggled to break above.
$35 would have to break and hold before the stock may move higher.
The red line and the lows show what technical traders may call a “descending triangle” pattern. This bearish continuation pattern could move the stock down if it can break and hold below $20. A break above the red line might indicate a trend reversal.
Canopy Growth Daily Chart Analysis: Canopy Growth is trading with three potential key levels.
The first level is $30, a potential support that the stock is nearing. This was previously resistance that broke and held as support. A break below may send a strong bearish push toward the next support level.
The next support level may be found near the $25 mark, as the stock has previously found support here.
The stock has struggled to cross above the $35 level. This area may act as resistance in the future as well. A break above this area with a retest as support could move the stock higher.
Aurora Cannabis Daily Chart Analysis: The daily chart above shows Aurora Cannabis is nearing a potential support level of $8.
This is an area the stock broke out above, and where it was able to find support again.
If the stock breaks below this level, it could see a stronger bearish move.
The stock has shown it's unable to break above the $12 level and hold for any extended period of time. This is an area where the stock may see potential resistance in the future. A break above this level with consolidation may bring the stock higher.
Photo courtesy of Tilray.
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