Sundial Growers Stock Looks For Support: A Technical Analysis

Sundial Growers Inc. SNDL shares are looking to find support, potentially near the $1 level.

The stock is trending on social media sites Monday, although there is no company news evident to explain the interest. 

Sundial Growers Chart Analysis: The daily Sundial chart shows the stock is trading in a channel (the white lines) between the $1 and $1.80 price levels. The chart may also be forming a “pennant” pattern.

The stock has shown resistance in the past at $1 before being able to break above the level and hold it as support. This area may be somewhere the stock finds support in the future.

The chart shows the stock has struggled to get above the $1.80 price level and hold. This may be an area of resistance in the future.

Along with being in a channel, the stock also seems to be forming what technical traders may call a “pennant” pattern. This pennant can be seen on the chart by connecting the highs and the lows with lines (purple lines).

Bulls want to see the pennant pattern break out first, and have the stock build higher lows up through the $1.80 resistance level.

Bulls would like to see the stock cross above the $1.80 level with consolidation before the price moves higher. 

Bears would like to see the stock fall below the drawn lines with some consolidation before the price moves downward. 

The stock is trading above the 200-day moving average (blue), indicating the sentiment of the stock may be bullish. The 200-day moving average may also hold as support if the pennant and channel support lines are broken.