Tilray Sparks Higher As Traders Turn Positive On The Cannabis Giant Following Q2 Earnings: What's Next?

Tilray Brands, Inc TLRY was popping up over 7% on Wednesday, confirming its current uptrend is still intact by printing a higher high.

The uptrend was initially confirmed on Monday, when Tilray dropped almost 7% to print a higher low. The decline came after the cannabis giant printed its second-quarter 2023 financial results, showing revenues declined 7% year-over-year to $144.1 million.

Traders and investors saw some positive signs in Tilray’s results, however, and on Tuesday the stock rallied about 1.3%. Tilray marked its 15th consecutive quarter of positive adjusted EBITDA, with gross profits of $40.1 million, a 22% increase, year over year.

From a technical analysis standpoint, Tilray looked set to trade higher on Wednesday, because on Tuesday the stock printed a bullish inside bar pattern on the daily chart.

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The Tilray Chart: Tilray indicated an uptrend could be in the cards on Jan. 4, when the stock printed a higher high at the $2.99 mark, which was slightly above the Dec. 22 lower high of $2.96. Monday’s higher low confirmed a new uptrend, and Wednesday’s surge indicated the trend is intact.

• On Wednesday, Tilray regained the eight-day exponential moving average (EMA) as support and attempted to reclaim the 21-day EMA as well, but was having difficulty. Bullish traders will want to see the stock climb up above the 21-day over the next few days and if Tilray can trade above the area for a period of time, the eight-day EMA will cross above the 21-day, which would add confidence.
• If Tilray closes the trading day near its high-of-day price, the stock will print a bullish kicker candlestick, which could indicate higher prices will come on Thursday. The second most likely scenario is that Tilray will print another inside bar pattern, which would lean bullish for Friday’s price action.
• Tilray could be settling itself into a rising channel pattern on the daily chart, which is considered bullish until a stock breaks down from the lower ascending trendline on higher-than-average volume. When Tilray retraces to print its next higher low, the stock may find support at the bottom of the channel.
• Tilray has resistance above at $3.02 and $3.30 and support below at $2.75 and $2.43.

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