Tilray Brands Inc. (TLRY) is among the weakest performers in the cannabis sector Monday, giving back some of last week's gains that had investors excited about potential federal policy changes.

The Catalyst That Was: Cannabis stocks surged last week after reports emerged that President Donald Trump is expected to reclassify marijuana as a Schedule III drug, moving it into the same federal category as certain prescription painkillers.

Here's what that actually means: It wouldn't legalize or decriminalize cannabis at the federal level, but it would reduce federal oversight, expand research access, and potentially improve profitability for licensed operators. The plan was reportedly discussed during a recent phone call with House Speaker Mike Johnson. Trump had previously expressed interest in marijuana reclassification back in August and has signaled he wants to finish what former President Joe Biden started.

Reading the Technicals: Tilray is sending mixed signals right now. The stock is trading 29.1% above its 20-day simple moving average, which shows short-term strength, but it's struggling below its 50-day and 100-day SMAs, sitting 7% and 1.3% below those levels respectively.

The RSI sits at 62.09, firmly in neutral territory. That means there's some bullish momentum without being overbought, leaving room for potential upside. The MACD is above its signal line, another bullish indicator.

Traders are watching key levels: support at $11.50 and resistance at $13.50. A break below support could signal more pain ahead, while pushing through resistance might indicate a trend reversal is brewing.

TLRY Price Action: At the time of writing, Tilray shares are trading 5.27% lower at $11.51.