Tilray Inc. (NASDAQ:TLRY) shares were trading higher Wednesday after the company announced it is expanding across California with distribution partners Reyes Beer Division. This ties together the continued westward expansion of SweetWater with the opening of SweetWater Colorado Brewing Company, LLC in Fort Collins, Colorado.
Tilray was trading 9.28% higher at $6.83 Wednesday afternoon.
Tilray Daily Chart Analysis
- The stock trades in what traders call a falling wedge pattern. This pattern forms when the stock is in a downward trend but the highs are falling at a steeper rate than the lows. The stock could see a bullish reversal if it is able to cross above the pattern resistance and consolidate above it for a time.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been climbing for a few weeks and now sits at 56. This shows that the stock is seeing more buyers enter the market and there is now more buying pressure than there is selling pressure. This is a possible sign a reversal is coming now that the stock is seeing more buyers.
What’s Next For Tilray?
Tilray is seeing some bullish momentum although it is not yet at the resistance in the pattern. This shows the stock is not yet ready to breakout but is getting closer as time goes on. The stock will need to hold the level it is at and continue to form higher lows to see a possible breakout.
Bullish traders are looking to see the RSI continue to hold above the middle line and form higher lows up to the resistance level. Bearish traders are looking to see the resistance hold and for the stock to continue to trade lower in the pattern and eventually fall below the pattern support.
