3 Cannabis Stocks Looking For Support

Cannabis stocks have been the talk lately as recreational legalization advances in New York.

Three stocks that look to be nearing support are Tilray Inc. TLRY, Canopy Growth Corp. CGC and Aurora Cannabis Inc. ACB.

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.