Tilray Inc (NASDAQ:TLRY) broke bullish from a triangle on May 25 and on Wednesday its stock had bullish continuation.

The move could be due to one or more of the following possibilities:

• Renewed interest in the cannabis sector: A couple of the larger Canadian cannabis companies have seen increased bullish volume and higher prices over the past couple of days. OrganiGram Holdings Inc (NASDAQ:OGI) and Hexo Corp. (NYSE:HEXO) rose 3.3% and 2.9%, respectively, on Wednesday.
• Relationship to meme stocks: GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) have surged this week. In January, GameStop and AMC were targeted for an epic short squeeze, with a parabolic rise and fall that began on Jan. 22 and ended on Feb. 2.
• Tilray was next on the list with a parabolic 247% rise that began on Feb. 2 and ended on Feb. 18.
• As of May 14, Tilray’s 426.84 million float had 34.81 million held short. That number is up from 22.25 million that was held short as of April 15. This indicates short interest has been increasing, which makes the chances of a short squeeze more likely.
• The Chart: For technical traders, Tilray’s stock looked ready to make a move because its trading range was tightening into the apex of a triangle on the daily chart.

See also: How to Buy Tilray Here (ACB) Stock 

What’s Next For Technical Traders: On Wednesday, Tilray made a 7.83% continuation move north on sustained bullish volume.

Tilray’s stock held the eight-day exponential moving average (EMA) as support and regained the 21-day EMA as well. While the eight-day EMA is still trending below the 21-day EMA, it has curled upwards indicating that Tilray’s stock should continue to rise and, if it does, the eight-day EMA will cross back above the 21-day EMA, which would be bullish.

Tilray’s stock is trading above a support level at $15.17 and below a resistance level at $17.57. Tilray’s relative strength index is registering at about 50%, which is very comfortable for the bulls because it has a lot of room to move higher before going into overbought territory.

Bulls want to see the eight-day EMA cross above the 21-day EMA as they continue to push Tilray’s stock over resistance near the $17 mark. If the stock can regain that level, it has room to move up toward the $20 level.

Bears want to see bearish volume push Tilray back down toward its $15 support. If Tilray was unable to hold that price point as support, it could fall back down to $11.87.

TLRY Price Action: Tilray was trading down 1.44% at $16.43 at last check.

(Photo: David Gabric via Unsplash)