After Tilray Inc (NASDAQ: TLRY) finalised its merger with one of the largest cannabis growers in the world, Aphria Inc, in the beginning of May, the new joint company had become the larger weed producer in the world by revenue. The joint venture still has a long way to go, before becoming an even bigger giant in the cannabis world, as marijuana has not been legalised yet in most of the US. The US is the conglomerate’s biggest market. Recreational marijuana is still illegal in most of the states and in some, you could even get charged for possession. After Biden’s win, many thought that the legalisation could pick the pace across the US, however the real picture is that this has been postponed and currently just sits as a promise, as with some other topics discussed during the election period. So, the new joint venture has room from growth, but it might not happen as quickly as was initially expected. This joint venture will trade under Tilray’s ticker, TLRY, and the stock could remain under investor radar as an assets, which may stay attractive in the long run.
The technical picture of Tilray Inc stock on our one-hour chart shows that up until the beginning of June, TLRY had a good run higher. But after finding resistance near the 23-dollar mark, the stock reversed lower and went all the way back to test a short-term upside support line taken from the low of May 13th. Currently, the share price is balancing slightly above that upside line, but as long as that line remains intact, we will stay positive.
If the stock is able to climb back above yesterday’s high, at 18.69, that might invite more new buyers into the game, this way helping the share price to rise further north. TLRY could travel to the 19.31 obstacle, or to the current highest point of this week, at 20.30. Initially, the stock may stall there for a bit, but if the buying interest remains high, the share price might drift to the 21.34 area, which is the high of June 10th.
The RSI is currently below 50 but points higher. The MACD is also pointing higher and had just jumped back above its trigger line, but currently sits well below zero. Although the two oscillators are in negative-price-momentum territory, we see a slowing downside speed of the price, which may eventually end up supporting the above-mentioned scenario in the near future, especially if the price jumps back above the 18.69 barrier.
Alternatively, if the stock breaks the aforementioned upside line and then falls below the 17.65 hurdle, marked by yesterday’s low, that could spook new buyers from the arena for a while. TLRY may then be forced to slide to the 16.70 obstacle, or even to the 16.16 zone, marked by the current lowest point of June and the low of May 27th respectively. If there are still no new buyers in sight at those levels, the share price might continue depreciating and possibly testing the 15.43 area, marked by the high of May 21st and the low of May 25th.
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