Sundial Growers’ (NASDAQ:SNDL) stock seems to be losing its promising start to 2021. On Wednesday, the stock was on the verge of dropping to $4, and shareholders are optimistic it doesn’t dip to $0.4. Although the results will not be as bad as expected, it is vital to be keen on the situation.
Currently, we are in an unusual period where speculation is levering outsized influence due to social media. As a result, equity units could be moving back since they are affordable. Similarly, Sundial stock is straddling its 200-day moving average by 32% below the 50-day moving average, which is a worrying concern. However, the 200 DMA coincides with the stock’s resistance line and long terms support. At the start of the pandemic, the level acted as support for the stock. It equally acted as resistance towards the end of 2020 before SNDL broke through early this year.
The company has been working in reducing expenditures and slashing debt to be a more efficient and leaner operator. Sundial is a worth cannabis stock to watch.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.