When Tilray Inc. TLRY officially merged with Aphria on May 3, this was a “sell the news” event.
Tilray has been trading down 14% since the inception of the new Tilray and its stock has been stuck near a support and resistance level at $15.17 over the past 10 trading days.
The Tilray chart: On Thursday, Tilray moved back above the $15 zone and was trading slightly above the eight-day exponential moving average (EMA). Tilray’s stock is supported by the 200-day simple moving average, which is trending slightly higher, indicating that the general sentiment towards the stock is bullish.
Tilray is trading below the 21-day EMA, which is slightly bearish, but the eight-day EMA curves slightly higher. If bullish volume enters Tilray’s stock, the 8-day EMA could rise above the 21-day EMA, giving bulls more confidence that a bigger move north was in the cards.
Tilray began forming a symmetrical triangle on May 7 and its stock is expected to reach the top of the triangle on May 24. If the pattern is recognized, volume should enter the stock to break it up or down resulting in both bears and bulls. an idea of the near-term future direction.
See also: How to buy Tilray shares right now
The bulls want to see Tilray’s action break bullish from the symmetrical triangle and regain support at the 21-day EMA. If Tilray makes a bullish move, it has the opportunity to rally towards the $17.50 level. If its stock was able to break above this level with momentum, it could hit $20.80 before running into more resistance.
The bears want to see Tilray’s stock fall from the triangle and lose support from the eight-day EMA. If the stock breaks out of the bearish triangle, it could fall to reach the support of the 200-day SMA, but if this level does not hold, it could fall further towards $11.87.
TLRY Price Action: Tilray was trading around $15 at press time.