SNDL Stock Forecast: Sundial Growers tentatively tries for weekly reversal

UPDATE: Sundial Growers (SNDL) stock is trying to turn around the current down week on hump day. One hour into Wednesday, shares are climbing 1.6% higher at $0.3890. The important thing to note is that Tuesday also saw a morning rally that quickly dissipated in the afternoon. At the moment the Nasdaq Composite is up just over 1%, so risk appears to be back on after the dismal performances of Monday and Tuesday. If bulls want SNDL to go anywhere, they will have to conclusively surmount $0.40, which has recently acted as resistance. Above there they might even make a run for $0.4435, the high point from last Friday. Otherwise, it is back to $0.35, the May 12 low, for this puppy.

NASDAQ:SNDL extended its recent losing streak to four straight sessions as the Canadian cannabis stock approaches its 52-week low price of $0.34. On Tuesday, shares of SNDL fell by a further 4.66% and closed the trading day at $0.38. It was another eventful day on the US markets, as major losses for the Dow Jones were reversed by the closing bell. Tech stocks, particularly in the ad-tech sector, tumbled as a warning from Snap (NYSE:SNAP) resulted in a major sell-off for the industry. On Tuesday, the Dow Jones managed to gain 48 basis points, the S&P 500 dropped by 0.81%, and the NASDAQ led the way lower by 2.35% during the session.

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A major domestic rival in Canada, Canopy Growth (NASDAQ:CGC), extended its own sell off after falling by 8.3% on Tuesday. The drop follows another analyst downgrade for the stock from Canadian investment research firm, Canaccord. The firm downgraded the Canadian version of Canopy’s stock from $10.00 to $6.00. Canopy has seen a number of downgrades as of late including ones from analysts at Bank of America, Stifel Nicolaus, and Canadian bank CIBC.

Sundial stock price

Sundial itself saw a recent price upgrade from BMO Capital as the Canadian investment firm maintained a Market Perform rating and raised the price target to $0.50. The analyst raised the price target following Sundial’s recent earnings report, and noted that its healthy financial balance sheet is a positive catalyst for the company.

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