2 Critical Levels For Sundial Growers

In financial markets, some price levels are more important than others. This is the case with the 70-cent and 80-cent level for Sundial Growers Inc. SNDL.

The 70-cent level was important support for the stock in May. It was also important support around Aug. 20. A rebound followed each time it fell to this important level.

At support levels, there is more demand for than supply of the stock. This is why downtrends end when they reach them. The buyers are willing to absorb all of the shares that are for sale.

Now Sundial has run into resistance at the important 80-cent level.

There’s resistance at this level because of buyers’ remorse. Many of the investors who paid 80 cents now regret their decision to do so because the stock is lower. They want out, but they don’t want to take a loss.

As a result, they place their sell orders at the same price they paid. 80 cents. If there’s a sufficient quantity of these sell orders, it creates resistance like it did here. This could keep a top on the price.