What's Going On With Marijuana Stocks Tilray And Canopy Growth?

Tilray Brands, Inc. TLRY and Canopy Growth Corporation CGC shares are trading higher Monday with renewed optimism on the possible rescheduling of cannabis. Here's a look at what's going on.

What To Know:

Cannabis stocks jumped on Friday and continue to climb Monday following chatter regarding a possibly imminent rescheduling of marijuana by the Drug Enforcement Agency (DEA). 

Vice President Kamala Harris said that the DEA needs to move quickly to reschedule marijuana at a meeting at the White House on Friday. 

"This issue is stark when one considers the fact that on the schedule currently, marijuana is considered as dangerous as heroin. Marijuana is considered as dangerous as heroin and more dangerous than fentanyl," Harris said. 

"I cannot emphasize enough that they need to get to it as quickly as possible, and we need to have a resolution based on their findings and their assessment," Harris added. 

Also on Friday, Doug Kass posted that on the social media platform X that the DEA will soon announce the rescheduling of cannabis to Schedule III. 

"We have learned yesterday that the US Drug Enforcement  Administration will shortly approve a rescheduling of cannabis to Schedule III –and that the biggest legal hurdle, an international treaty (the Single Convention on Narcotic Drugs (1961)), to which the US is a signatory has been resolved favorably," Kass posted. 

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TLRY Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Tilray Brands, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Tilray Brands, the 200-day moving average sits at $2.02, according to Benzinga Pro, which is above the current price of $1.88. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

TLRY, CGC Price Action: According to Benzinga Pro, Tilray shares are up 9.25% at $1.89, and Canopy Growth shares are up 16.4% at $3.58 at the time of publication. 

Image: Mehdi Nobakht from Pixabay