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Tilray (TLRY) Tags All-Time Low Double Bottom Support

Tilray (TLRY) Tags All-Time Low Double Bottom Support

The $20-$21 level on Tilray (TLRY) is a make or break level for the pot stock. After an earnings/revenue warning from Hexo Corp (HEXO), another Canadian marijuana producer, Tilray investors are visibly shaken. However, the chart does signal support here and investors will be watching to see if it holds. Investors will remember in 2018 when Tilray surged to $300/share, things have certainly changed since then.

 

I added some Tilray today as I believe this is the normal cycle of any hot sector. Investor sentiment is capitulation bearish which is likely near an inflection point. I continue to believe the sector will see buyouts by snack/drink companies and even in a recession, growth in this industry is a no brainer. If alcohol does well during a recession, so will CBD and THC products. In addition, if a democrats becomes President in 2020, marijuana will easily become federally legal and  banking rules will be adjusted to work with the industry.