Tilray Brands Inc. (NASDAQ:TLRY) closed a 22.81% high on Friday after details emerged that Congress will vote on a marijuana bill next week. While the bill does not yet seek to legalize marijuana at the federal level, the vote signals a progressive shift towards legalization.
The bill on the floor of the house removes the red tape on cannabinoids research that could lead to FDA-approved drug developments.
Any progress towards federal legalization is important to the valuation of TLRY. It signals growth in the marijuana industry. Currently, 18 states have legalized non-medical uses of marijuana while 38 approve of medical use, with restrictions. The law marks significant progress towards the expunging of marijuana from Schedule I.
Tilray Brands set to gain as marijuana bill goes to vote
Source – TradingView
At a valuation of $8.56, TLRY is still valued significantly below the highs of the stock. This means that the stock has a lot of headway to a valuation of $30. The RSI took a sharp turn upwards, marking the beginning of upward momentum. A bullish trend has started building on the MACD marking the possibility that the stock will continue gaining.
However, the stock’s performance will largely depend on whether or not the bill sails through in the vote.
Summary
Marijuana stocks would enjoy high growth in the event of legalization at the federal level. With the high likelihood of the bill’s approval, next week’s vote will send the stocks skyrocketing. We, therefore, think that TLRY is still a buy at the price of $8.56. Investors should trade the news.
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