Tilray Inc. (NASDAQ:TLRY) shares are trading lower Wednesday as the cannabis sector declines as a whole. The stock has recently fallen below support in what traders call a sideways channel and appears to be dropping further from the support level. The stock was trending throughout the day on social media sites such as StockTwits.
Tilray was down 5.06% to $6.75 at the time of publication.
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Tilray Daily Chart Analysis
- The stock was trading in a sideways channel before falling below the $10 support level that has held multiple times in the past. Resistance was previously found near $20 and that level may continue to hold as resistance in the future.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and these moving averages may also hold as areas of resistance in the future.
- The Relative Strength Index (RSI) has been steadily falling lower for the past couple months and now sits at 32. This shows the stock is sitting on the edge of the oversold range and indicates sellers have been overpowering buyers.
What’s Next For Tilray?
As Tilray falls below the support line, it begins to look more bearish. The stock has been in a steady downward trend for some time and has not shown signs of reversing yet.
Bearish traders are in control of the stock and are looking to see it continue to fall lower and be unable to cross above the moving averages.
Bullish traders are looking to see the stock make a bounce and begin to form higher lows, which would be an indication that the stock could be beginning to form an upward trend.
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