2 Pot Stocks Looking To Find Support

Sundial Growers Inc. SNDL and Tilray Inc. TLRY stock lost ground Tuesday.

The cannabis stocks jumped Monday following the passage of the SAFE Banking Act in the House of Representatives and are now making a correction.  

Sundial Growers Daily Chart Analysis:

The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue). This indicates the stock has been in a period of consolidation.

The stock may not see a large move until one of these moving averages is broken.

The stock is fighting to find buyers near an area that was previously resistance.

Key Levels To Watch: Sundial stock has a key level near 95 cents that previously held as resistance and eventually became support.

Now the stock is starting to struggle to find support near this area again; a break below this area may cause a large drop-off to occur. 

The stock crossed above this line Monday, but fell back below it Tuesday. The coming days are key to see whether the stock will hold above this level or break below.

Tilray Daily Chart Analysis:

Tilray stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue). This indicates the stock has been in a period of consolidation.

The stock may not see a large move until one of these moving averages is broken.

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Key Tilray Levels To Watch: The stock has a key level near $16 that has held as support.

Now the stock is looking to find support near this area again; a break below this area may cause a large drop-off to occur. 

If the stock falls below the $16 area, it may not find support until the $12 level, which is a previous area of resistance.

What’s Next: Bullish technical traders would like to see the stocks bounce at these support levels and start moving higher.

Bearish technical traders would like to see the stocks fail to hold above the support levels. A cross below these support levels may cause the stocks to see large downward pushes.

SNDL, TLRY Price Action: Sundial shares closed Tuesday's session down 10.49% at 84 cents, while Tilray shares lost 8.89%, closing at $15.89.