SNDL Stock Price Fell 7%; Will SNDL Lose the Previous Gains?
SNDL stock price faced rejection from $2.36 and corrected 25% in a short period of time. It reversed down and began to decline by forming lower-low candles. SNDL Inc. stock price also dropped below the 50-day and 200-day EMA showcasing the trend that turned down.
Meanwhile, a massive spike in the selling volume is also visible and the price also followed the same direction. It indicates that the previous upmove was temporary and investors chose to exit on higher levels.
In August, SNDL stock price took support near $1.50 and showed some decent rally. It triggered the positive sentiment and created hope for more upward momentum. Sadly, buyers were unable to hold the higher levels and the price reverted down.
The price pattern of the stock is bearish indicating sellers are more active as compared to buyers. Therefore, if any short-term upmove comes, it will face difficulty to hold the higher levels. The broader market indices like Nasdaq Composite and Dow Jones are turning bearish. So, it might negatively impact the SNDL stock.
Will SNDL Stock Price Decline Further?
SNDL stock price lost the bullish momentum and eroded the previous gains. The price behavior of the stock is quite volatile indicating that the speculative activities are high.
Till SNDL share price is trading below the $2.00, it is expected to remain in the bears’ grip.
However, if the overall market improves and SNDL succeeds in regaining the $2.00 mark, then 5-10% more upside will open. On the other hand, if the price continues to decline and sustain below the 50-day EMA, then it might decline further toward $1.00.
SNDL Inc. Stock Price Fell For Three Consecutive Weeks
SNDL Inc. stock price fell for three consecutive weeks. It triggers profit booking and sellers’ dominance is visible. The recent downfall looks reliable and sellers look more aggressive. Therefore, investors must avoid creating any bullish positions.
The MACD curve generates a negative crossover and slopes down. The histogram bar in red indicates that the price is likely to trade with a bearish bias. The RSI at 42 denotes weakness. If the price declines further, then the RSI may reach neutral territory.
Conclusion
SNDL stock price faced sharp rejection from $2.36 and eroded the previous month’s gains. It dropped below $2.00 which hurt the sentiment of the long-term investors and further declined. The analysis suggests that SNDL share price is bearish and more downside is possible.
Technical Levels
- Resistance levels: $2.14 and $2.36
- Support levels: $1.48 and $1.24
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.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
