Tilray – Will cannabis pick up again?

<p><strong>Canadian cannabis grower Tilray</strong> is known for being the first cannabis company to have an initial public offering on a US stock exchange, however it has since proven that it has failed to be profitable in competition with the significant number of important segments related to marijuana.  By basing  the price of their shares  on how the cannabis market develops in the long term and not on solid fundamentals,<strong> it has become a chain with volatile value internationally.</strong></p>
<p><strong>Tilray distinguishes itself from other cannabis companies</strong> by the competitive strategy that makes the difference in its long-term performance, capturing the interest of some investors in its infrastructure dedicated to the production and global distribution of cannabis. It also has an abundant activity of research and development to drive growth and establish itself as a leading medical marijuana company. It is currently in the process of conducting <strong>at least 10 different clinical trials</strong> in conjunction with different medical centers and universities.</p>
<p>After the most recent trading session Tilray is priced at <strong>$8.43,</strong> while the company’s stock is registering <strong>–63.27% </strong>over the 52 week period from the high price and <strong>246.92%</strong> higher than the highest low for the same time period, leaving its stock price range in that same period between <strong>$2.43</strong> and <strong>$22.95</strong> of fixed return. In terms of year-to-date metrics, Tilray’s reported return to the market was –<strong>52.89%</strong> and revenue was <strong>25.12% quarterly</strong> compared to the same period of the previous year, so the total market value of the company is set at $946.93 million dollars, with a total of 1646 employees.</p>
<p>Over the past 12 months, shares of Tilray fell <strong>-54.44%.</strong> The market capitalization of the shares reached <strong>$1.06</strong> billion, with <strong>129.10</strong> million shares outstanding and <strong>66.51</strong> million shares in the current float, compared to the average trading volume of <strong>13.94</strong> million shares, reaching a trading volume of 51,167,627 points on the most recent trading day.</p>
<p>These figures could mean that people who buy shares in the company at this time may face a dilution of their capital, especially if it takes longer than expected to reach the profitability that the company is finding  so hard to achieve. While the company’s strategy is to focus on medicinal cannabis products in the European Union segment, it will only be effective in the long term, rather than focusing on pointing out constant trends of reducing costs and increasing revenue.</p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/12/TILRAY1D-1.jpg"><img loading="lazy" class="aligncenter size-full wp-image-193223" src="https://analysis.hotforex.com/wp-content/uploads/2020/12/TILRAY1D-1.jpg" alt="" width="1323" height="644" srcset="/wp-content/uploads/2020/12/TILRAY1D-1.jpg 1323w, /wp-content/uploads/2020/12/TILRAY1D-1-300×146.jpg 300w, /wp-content/uploads/2020/12/TILRAY1D-1-1024×498.jpg 1024w, /wp-content/uploads/2020/12/TILRAY1D-1-768×374.jpg 768w, /wp-content/uploads/2020/12/TILRAY1D-1-696×339.jpg 696w, /wp-content/uploads/2020/12/TILRAY1D-1-1068×520.jpg 1068w, /wp-content/uploads/2020/12/TILRAY1D-1-863×420.jpg 863w" sizes="(max-width: 1323px) 100vw, 1323px" /></a></p>
<p><strong>Tilray</strong> has been trading for a short time and has a record high of <strong>104.63</strong> marked on <strong>01/14/19</strong> from which it has not stopped falling to its record low at <strong>3.91</strong> on <strong>09/29/20.</strong> The price since September has had a bullish rally surpassing its psychological level of 10 and marking a maximum at <strong>11.60</strong> from which it has created a <strong>“cup</strong> a<strong>n</strong>d <strong>handle</strong> ” <strong>pattern</strong> from that price with a rebound at the Fibonacci 78.6% of the range of its last push at <strong>6.26.</strong> Currently the price is at <strong>8.53</strong> already with a test of the Fibo level <strong>38.2%</strong> at <strong>9.00.</strong></p>
<p>It stands at the <strong>Fibonacci 38.2% at 7.58</strong>, the moving average of 21-day as well as the Fibonacci <strong>61.8%</strong> at <strong>7.40,</strong> the <strong>200-day</strong> moving average at <strong>6.96,</strong> the bullish guideline, and the <strong>100-day </strong>moving average daily at <strong>6.16</strong> which  is below the <strong>78.6%</strong> Fibonacci level at <strong>6.26.</strong> The Resistances as well as the bullish targets of the pattern are at the Fibo 38.2% at <strong>9.00,</strong> the psychological level of 10 and the levels of the <strong>Fibonacci Extension</strong> at <strong>61.8%</strong> at <strong>10.40,</strong> the previous maximum at <strong>11.60</strong> and continuing to rise in the <strong>FE100</strong> at <strong>12.99,</strong> the <strong>FE 127.2</strong> at <strong>14.57</strong> with the psychological level of <strong>15.</strong></p>
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<p><strong>Aldo Weidner Zapien, Market Analyst – HF Office of Education – Mexico</strong></p>
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