When Tilray Inc's (Nasdaq: TLRY) formally merged with Aphria on May 3, it was a "sell the news" event.

Tilray is trading down 14% from when the new Tilray was created and its stock has been stuck near a support and resistance level at $15.17 for the last 10 trading days.

The Tilray Chart: On Thursday, Tilray popped back over the $15 area and was trading slightly above the eight-day exponential moving average (EMA). Tilray’s stock has the support of the 200-day simple moving average, which is trending slightly upwards indicating the overall sentiment in the stock is bullish.

Tilray is trading below the 21-day EMA, which is slightly bearish, but the eight-day EMA is curling slightly upwards. If bullish volume enters Tilray’s stock, the eight-day EMA could cross above the 21-day EMA, which would give bulls more confidence that a larger move north was in the cards.

Tilray began forming a symmetrical triangle on May 7 and its stock is set to meet the apex of the triangle on May 24. If the pattern is recognized, volume should enter into the stock to break it upwards or downwards which would give both bears and bulls an idea of future short-term direction.

(Click on image to enlarge)

Bulls want to see Tilray’s stock break up bullish from the symmetrical triangle and regain support of the 21-day EMA. If Tilray makes a bullish move, it has room to move up towards the $17.50 level. If its stock was able to break above that level with momentum, it could reach $20.80 before bumping into more resistance.

Bears want to see Tilray’s stock break down bearish from the triangle and lose support of the eight-day EMA. If the stock does break bearish from the triangle, it could fall down to meet support at the 200-day SMA but if that level didn’t hold, it could fall further toward $11.87.

TLRY Price Action: Tilray was trading around $15 at publication time.