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Tilray stock price rolls over: TLRY’s fate lies in the hands of major support

The Tilray stock price reversed course last week and is on a 3-day losing streak. However, TLRY is now approaching several significant support levels.

Canadian pharmaceutical supplier Tilray Inc (TLRY: NASDAQ) started the post-independence day week the same way it finished the last one. TLRY slipped 2.96% to close yesterday’s session down $0.51 to $16.72.

Tuesday’s decline has now seen 13% wiped from the company’s value in the last week. Furthermore, TLRY is close to 30% below the 9th of June’s $23.04 high.

This weakness has dragged Tilray Inc dangerously close to some important levels. And should the support fail, investors hopes of a return to February’s $67.00 peak may go up in smoke for the foreseeable future.

TLRY price forecast

Looking at the daily chart, we can see that TLRY is nearing a trio of supportive indicators.

Firstly, a horizontal line of support can be drawn from the $15.60 low on January 25th. This has proved to be a pivotal price level over the last three months and been both a support and resistance level.

Additionally, the 200-day moving average is present at $15.49, just below the horizontal line.

Thirdly and crucially, a rising trend from October is visible at $15.13, reinforcing the confluent support.

Therefore, $15.13 represents an important floor for the Tilray stock price. And should TLRY penetrate this support on a closing basis, it could more than halve in value.

In my opinion, the December $10.01 high becomes a logical target in the event of a broader decline.

However, the significance of the support levels will likely attract some buying.

And on that basis, as long as TLRY remains above $15.13, it could offer longs a high-value trade. A potential upside target is June’s $23.04 high. Therefore, Purchasing TLRY at Tuesday’s closing price with a stop below $15.00 risks $1.72 vs a potential gain of $6.32. Obviously, this excludes dealing and associated slippage costs.

This trades attractiveness will not go unnoticed, and subsequently, an increase in buying will lead to more selling if the price breaks down.

Tilray stock price chart (daily)

tilray stock price prediction

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