Tilray Brands Inc (NASDAQ:TLRY) shares are in the spotlight Tuesday, surging over 20% amid continued chatter about potential marijuana reclassification.
- Tilray Brands stock is showing exceptional strength. What’s behind TLRY gains?
What To Know: The move in Tilray shares appears to be driven by President Donald Trump’s comments about potentially reclassifying marijuana. This news has sparked excitement in the cannabis market, as it could significantly alter the landscape for cannabis companies, including Tilray.
Trump told reporters on Monday that he’s “very strongly” considering an executive order that would make cannabis a Schedule III substance.
“A lot of people want to see it — the reclassification — because it leads to tremendous amounts of research that can’t be done unless you reclassify,” Trump said.
Following the news, Tilray CEO Irwin Simon told CNBC that he’s “a lot more optimistic” about the future of the cannabis space than he has ever been.
Tilray shares are up more than 60% over the past five trading sessions. The cannabis stock is currently showing a bullish technical setup, trading significantly above its 20-day and 50-day moving averages, indicating strong short-term momentum.
The RSI is currently at 54.94, indicating a neutral momentum for the stock. This suggests that while there is no immediate overbought or oversold condition, traders should watch for any shifts that could signal a change in momentum. Meanwhile, the MACD is above its signal line, indicating bullish momentum for Tilray shares.
Key support is at $11.50, while resistance may be encountered at $15.50. If the stock tests the support level and holds, it could indicate a continuation of the current bullish trend, but a break below could signal a reversal.
Currently, Tilray is trading at 49.0% of its 52-week range, which suggests it is positioned in the middle of its yearly performance spectrum. This positioning indicates that while there is room for growth, traders should remain cautious of potential resistance levels ahead. If recent news about potential reclassification gains traction and Tilray shares break through resistance, the cannabis stock could begin climbing toward new highs.
Overall, the combination of bullish technical indicators and positive news sentiment could provide a favorable environment for Tilray, but traders should keep an eye on key support and resistance levels for potential signals.
TLRY Price Action: Tilray shares were up 29.83% at $14.24 at the time of publication on Tuesday, according to Benzinga Pro data.
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