SNDL stock price was at $1.57 with an increase of 1.95% in Friday’s trading session wherein trading volume remained below the average trading volume. The SNDL Inc (NASDAQ: SNDL) stock price fell 81.93% in one year and recorded its new 52-week low on 15 March 2023. This indicates that SNDL has lost its investors’ confidence.
Since the start of 2023, the SNDL stock price has been trying to seek stability after experiencing a volatile year. However, after reaching its upper trendline of the falling wedge the SNDL stock price again started its downtrend. The SNDL stock price 50-Day EMA is acting as a primary resistance which shows that sellers are placed there to push the stock below the upper trendline of the falling wedge chart pattern as can be seen over the daily time.
Before the price action corrects lower, the falling wedge pattern appears when the stock price is advancing in a broad bullish trend. Two trend lines that converge inside these pullbacks are shown. When the price action breaks through the resistance of the upper trendline or wedge, the consolidation phase is over.
The formation of the spinning top candlestick pattern after the downtrend over the daily time frame chart showed that the market was indecisive. Both bulls and bears were active in the session. The bulls were driving the SNDL stock price up, as seen by the long upper shadow, while the bears were driving it down, as indicated by the long upper shadow.
However, neither could gain an upper hand over the other and hence, the session ended with the opening price and closing price of the stock being close to each other as shown by the small body.
If the SNDL stock price wants to recover, it has to gain investor confidence, as well as the buyers’ support to break out from the upper trendline of the falling wedge chart pattern.
More About SNDL Inc
SNDL Inc. is a Canadian company that operates in the private sector as a retailer of liquor and cannabis. They have several retail banners such as Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, and Spiritleaf. SNDL Inc. operates through four segments, namely Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments. The Liquor Retail segment primarily focuses on selling beers, spirits, and wines through their wholly owned liquor stores. The Cannabis Retail segment is responsible for the private sale of recreational cannabis through their wholly owned and franchised retail cannabis stores.
The Cannabis Operations segment is involved in the cultivation, distribution, and sale of cannabis for both the adult-use market and medical markets within Canada. The Investments segment of SNDL Inc. deploys capital to various investment opportunities. SNDL Inc. also has a cannabis brand portfolio that includes Top Leaf, Sundial Cannabis, Palmetto, Spiritleaf Selects, Grasslands, Versus Cannabis, Value Buds, Vacay, and Grasslands. Furthermore, SNDL Inc. operates a vast network of over 180 multi-banner cannabis retail stores across Canada.
SNDL Stock Price Technical Analysis
According to technical indicators, SNDL stock price may show an upward movement. The Relative Strength Index (RSI) is increasing in the oversold zone and is showing a positive crossover on the daily time frame chart. It indicates that buyers are accumulating and pushing SNDL upwards.
Essentially, the present bullish influence is strong. The current value of RSI is 40.57 which is above the average RSI value of 32.20. The MACD and the signal line are increasing and showing the possibility of a positive crossover over the daily chart, which provides evidence that it can support the RSI claims. Investors need to watch every move over the charts during the day’s trading session.
The technical indicators have maintained their sell signal on the SNDL stock price, which gives the signal to long traders to close all their trades in the market.
Summary
In Friday’s trading session, SNDL’s stock price rose by 1.95% to reach $1.57, while the trading volume remained below average. On March 15th, 2023, SNDL’s stock price hit a new 52-week low after a tumultuous year. Since the beginning of the year, the SNDL stock price has been trying to find stability.
A spinning top candlestick pattern formed on the same day that SNDL’s stock price hit its new low, highlighting market indecisiveness. The decrease in trading volume suggests that traders have little confidence in SNDL’s stock price. Technical indicators such as RSI and MACD are both increasing, displaying a positive crossover over the daily time frame chart, indicating strength in the current bullish phase.
Technical Levels
Resistance Levels: $1.71 and $2.46
Support Levels: $1.48 and $1.34
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/03/26/will-sndl-stock-price-escape-from-this-declining-pattern/