The Tilray stock price snapped 4 consecutive days of losses, closing slightly higher in yesterday’s session. However, TLRY may soon resume the slide.
Tilray (TLRY:NASDAQ) finished the day at $18.14, +$0.15 (+0.83%)
Following increasing mentions on Reddit’s ‘Wallstreetbets’ forum last month, it appeared Tilray was about to charge higher. However, after briefly clearing the 100-day moving average at $21.53, the rally faded, and TLRY is lower by 20%.
The Tilray stock price exploded from around $8.00 to $67.00 in a frenzied 6-week buying spree at the start of the year. Remarkably, even the 700% gain still left TLRY woefully short of its 2018 high of $300. In the four months that followed, the stock had given back 80% of the rally.
Despite the earlier excitement surrounding the cannabis sector, TLRY has failed to live up to the hype. So can the retail army get Tilray flying again, or is this latest rally doomed to fail?
On the daily chart, we can see that after clearing the 50-day moving average at $17.24, the Tilray stock price accelerated higher. The subsequent buying momentum took the price to its recent $23.04 high, above the 100-day average at $21.52.
However, the price reversed lower intraday. And for the second time in a month, Tilray traded above the average before closing below.
So, the price is now wedged between the 100 DMA above and the 50 below. A close above $21.52 would be extremely positive and target the 15th of March high at $31.32.
However, if the price fails to hold $17.24, it will be staring at a major support level.
The 200-day moving average at $14.72 could be considered the most important level for TLRY bulls. Crucially, it is positioned just below trendline support at $14.90.
Therefore, if the price breaks below $14.72, substantial loses could follow.
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