SNDL stock price (NASDAQ: SNDL) showed a surprising recovery in the previous month. It gained 21.90% in July and displayed signs of a short-term pullback.
SNDL stock managed to climb above the 50-day EMA showing mild bullishness. However, the long-term trend of the stock is still in a downward direction.
SNDL share price is stuck in the narrow range between $1.25 to $1.70. Slow and steady the prices are coming near the supply zone. Quarterly Earnings are also scheduled in the coming week so volatility in the stock might increase.
At the beginning of May, SNDL Inc.’s stock price gained some positive momentum and attempted to break the $2.00 hurdle. However, the attempt failed and prices faced strong rejection from higher levels. Later, prices continued to decline and eroded the previous gains.
In the mid of June, SNDL stock hit a 52-week low at $1.25. Later, the stock begins to recover and regains the 50-day EMA.
SNDL stock is in a downtrend so any short-term up move will surely face difficulty to hold the higher levels. SNDL stock price closed the previous session at $1.49% with an intraday decline of -1.97%. The market capitalization stands at $387.78 Million.
Will SNDL Stock Price reach $2.00?
SNDL stock price (NASDAQ: SNDL) is recovering and forming a bullish reversal pattern. Buyers are trying their best to keep the price above the 50-day EMA. It shows short-term bulls are active but nobody knows when they will change their mind and begin profit booking.
SNDL Inc. scheduled the Quarterly Earnings on August 14, 2023. Market analysts estimate an EPS of 0.008 and the revenue estimate is $195.691 Million.
If the company succeeds to meet the estimates then stock prices might react positively and begin the journey to reach $2.00. On the other hand, if the company disappoints in earnings then bears might try to drag the stock prices down to the previous lows.
SNDL Stock Formed Long Tail Bearish Candle
SNDL share price formed a long tail bearish candle on the weekly time frame. However, the prices still hold the $1.400 support so a bounce back is possible. The MACD curve rises upward and sustains above the zero line. It indicates mild bullishness.
The RSI at 51 near neutral territory indicates a balance between a bullish and bearish position. The super trend indicator shows the price is above the buy line so the short-term trend remains in the favor of bulls.
Conclusion
SNDL stock price (NASDAQ: SNDL) performed well in the previous month. The stock is in recovery mode and the next directional move might be visible after Earnings.
Technical levels
- Resistance levels: $1.67 and $2.00
- Support levels: $1.40 and $1.25
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/06/sndl-stock-risk-of-short-squeeze-is-high-after-earnings/