Sundial Growers Needs To See A Break Past Resistance Or It Likely Continues Dropping

Sundial Growers Inc SNDL shares are trading lower Wednesday, although the company announced an investment into Indiva Ltd NDVAF. The company confirmed Tuesday that it received $8.5 million in funds from Sundial Growers.

Sundial Growers was down 0.89% at $0.63 at last check Wednesday afternoon.

Sundial Growers Daily Chart Analysis

Shares have been trading in what technical traders call a downward trending channel after the stock saw a large jump higher earlier this year in June.

Connecting the highs of the chart shows where the stock has found resistance in the past. Taking another line parallel to this line and connecting it to the lows shows where the stock has been finding support.

The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.

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Each of these moving averages may hold as a possible area of resistance in the future.

The Relative Strength Index (RSI) has been moving sideways below the middle line for a time and now sits at 36. This shows that the stock has been seeing more selling pressure than buying pressure in recent weeks.

See Also: Indiva's Shares Jump On Additional $8.5M Investment From Sundial

What’s Next For Sundial Growers?

Bullish traders are looking to see the stock make a bounce and begin to form higher lows. Following higher lows, bulls want to see the stock break above the channel resistance. This could cause the stock to change trends and possibly begin an upward trend.

Bearish traders are in control of the stock at the time and looking to see the stock continue to trade below channel resistance. Bears are hoping the stock will continue trading below the moving averages for bearish sentiment to stay intact.

Image by Eugenio Cuppone from Pixabay