Tilray Inc's (NASDAQ:TLRY) stock lost a key technical level Wednesday after trading in a bearish pattern for eight weeks.

The cannabis company's stock skyrocketed 166% over the course of five trading sessions in February but returned to ground level two weeks later. The stock's sharp rise and fall was due in part to the efforts of the r/WallStreetBets community who targeted a number of stocks with high short interest, as well as the election of Joe Biden as U.S. president that could give a lift to legalization sentiment.

The Tilray Chart: Tilray had been trading in a bearish descending triangle since Feb. 16. This means that it was making lower highs within the pattern but maintaining a low of about $20.80.

During the eight weeks Tilray traded in a descending triangle, it has failed to make any significant bullish patterns on smaller time frames and so has been unable to break up out of the larger bearish pattern.

With the apex of the triangle set to hit by the end of Thursday's trading session, sellers came in Wednesday morning and Tilray’s chart broke bearish.

See also: How to Buy Tilray Here (ACB) Stock 

The Potential Trades: Bears could wait for Tilray to pop back up, retest and reject the lower horizontal trendline to enter a short position. Bulls will want to wait for a significant bullish pattern to develop on a shorter timeframe to attempt going long. 

Tilray is also set to complete its merger with Aphria Inc (NASDAQ:APHA) this quarter, which could change the bearish sentiment on the stock.