Benzinga
Published Aug 15, 2022 19:40
Updated Aug 15, 2022 20:40
Is Tilray Still A Bear Play Or Is The Cannabis Giant Ready For A Big Break North?
Tilray Brands, Inc (NASDAQ: TLRY) was spiking up over 6% on Monday, attempting to break up from a falling channel on the daily chart, which the stock began trading in on Aug. 8.
Within the falling channel pattern, Tilray has been making a series of lower high and lower lows in a downtrend on the daily chart. The pattern is bearish for the short term, but can be bullish down the road.
For bearish traders, the "trend is your friend" (until it's not) and the stock is likely to continue downwards. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
Bullish traders will want to watch for a break up from the upper descending trendline, on high volume, for an entry. When a stock breaks up from a descending channel, it's a powerful reversal signal and indicates a rally is likely in the cards.
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The Tilray Chart: Although Tilray is trading in a slight downtrend within the falling channel on the daily chart, on the weekly chart, the stock has been trading in an uptrend since July 5. On the daily chart, Tilray formed its most recent lower high on Aug. 11 at $4.27 and the stock printed its most recent low at the $3.82 mark on Aug. 9.
See Also: Why Does This Undervalued Cannabis Stock Have An Encouraging Outlook?
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