Shares of Tilray  (TLRY  were swinging wildly on Tuesday, currently down about 2% to $70.85 after opening near $75, a gain of almost 4%.

Revenue growth for the quarter exploded more than 200% year over year, but the company registered sales of just $15.53 million while recording a GAAP loss of 33 cents per share.

While the results were ahead of expectations, investors are having trouble digesting the news as clearly shown in the trading action thus far. However, Tilray shares sit near two critical junctions. Should one give way, it could pave the way to a big breakout or a big breakdown.

Which will it be?

Trading Tilray Stock

Six-month daily chart of Tilray stock
Six-month daily chart of Tilray stock

There is clearly downtrend resistance (blue line) squeezing Tilray stock lower, as it continually bounces off ~$70 support. That creates concern among longs. As the old trading saying goes: "The more times a level is tested, the more likely it is to give way."

If that's the case, a close below $70 would be worrisome and put the $65 level on the table. Below that mark though and Tilray stock could tumble into no-man's land.

So is there any good news? The good news would have to come in the form of a breakout. To do so, TLRY stock will need to close over downtrend resistance, and preferably over the 20-day and 50-day moving averages as well. If it can bulls can use two upside targets, the first being the 100-day moving average near $87 and the second at $100.

This setup is what makes it so difficult for the bulls. There are various resistance levels overhead, while the trend has clearly been lower over the last six months. With only one line of defense, there's a lot riding on the stock's action on Tuesday, as well as the rest of this week.

That said, should TLRY stock hold up and start to rally, a move over key levels could trigger a massive squeeze. That's as almost 40% of the float is sold short, which is a really elevated reading. Tilray's lacking decline on Tuesday should certainly have shorts on edge. That concern will only elevate if they can't crack $70, as a reversal could spell devastating news for the bears. 

The bottom line? While we're not seeing much action in Tilray -- or in Canopy Growth (CGC - Get Report) , Aurora Cannabis (ACB - Get Report) and New Age Beverages (NBEV - Get Report) for that matter -- doesn't mean a big move up or down isn't coming. Keep this one on your radar.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.