Where Tilray Might Go In Coming Weeks As Cannabis Stock Nears End Of Pattern
Tilray Inc. (NASDAQ:TLRY) shares were trading lower Friday after shareholders approved an increase in the number of authorized shares of its common stock.
The stock looks be coming to the end of a technical pattern and soon could see a large push in movement.
Tilray was trading down 2.53% at $12.54 at last check.
Tilray Daily Chart Analysis
- Shares have been falling for a time, but are nearing the end of what technical traders call a falling wedge pattern. Shares could possibly see a reversal if the price can break above pattern resistance.
- The stock has been condensed between narrowing highs and lows and is now nearing the point in the wedge. A break above either pattern support or resistance could let the price break out in the pattern, continuing in the direction of the break.
- The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
- Each of these moving averages may hold as a possible area of resistance in the future.
- The Relative Strength Index (RSI) trades sideways below the middle line and now sits at 39. This shows the stock has seen more selling pressure than buying pressure in the last few weeks.
What’s Next For Tilray?
Bullish traders are looking to see price break above the pattern resistance. After breaking above the resistance, bulls are looking for a period of consolidation before the stock could see another leg up.
Bears are looking to see the stock fall down and break below the pattern support. A break below pattern support with some consolidation could hint the stock is ready to see a further bearish push.
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