Shares of Sundial Growers (NASDAQ: SNDL) were trading over 3% lower as the selloff got deeper on Tuesday. SNDL rallied by over 40% earlier this month where it surged from $0.6 to almost $1, however shortly after the rally selling volumes began to rise. SNDL has fallen by over 35% from its high this month, however, this may not be the end of the sell-off. SNDL is not showing any signs of reversing and is looking weaker by the day. Will SNDL make a comeback in December?
Here is what the charts are pointing towards-
After a bullish divergence was formed earlier this month, SNDL rallied sharply however it has given up all its gains from the rally and is now even lower than the start of the rally.It is looking like SNDL took strong resistance from the 200-day moving average and toppled down from there.SNDL saw a huge sell-off with large red candles being formed on the daily timeframe, this is suggesting that the selling volume is very high and is showing weakness in the stock.SNDL has a very crucial support level at $0.64, however, SNDL has brokedown from the level on Tuesday which is indicating that it is very weak at the moment.Investors must be cautious and avoid any long entries until SNDL is able to break back above $0.64, moreover, investors can also wait for SNDl to break the 50-day moving average to confirm a bullish bias.If a long entry is taken a target of $0.75 can be set, followed by $0.83.
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