SNDL Stock News: Sundial Growers finds support at $0.30 ahead of pivotal Fed meeting

• NASDAQ:SNDL fell by 2.03% during Tuesday’s trading session.
• Tilray and Hexo renegotiate their deal for Tilray’s stake in the company.
• Canopy Growth and Aurora Cannabis both bounce off their 52-week low prices.

UPDATE: Sundial Growers (SNDL) stock seems to have found some interim support at $0.30. The Canadian cannabis stock fell just below this round level on Tuesday, but is trading modestly up – an anecdotic for a penny stock 2% – at the time of this update, one hour into Wall Street's trading session. SNDL shares have been trading in the red for five consecutive days, amid the broad market sell-off triggered by huge risk-off swings and the demand for cash skyrocketing. The pivotal Federal Reserve meeting scheduled later on Wednesday (at 18.00 GMT) should be highly influential both on the short-term and mid-term price behavior of the stock. Sundial, a popular meme stock during the huge retail trading boom from the covid pandemic days, is trading at levels not seen since November 2020.

NASDAQ:SNDL extended its current losing streak to five straight days as the Canadian cannabis stock continues to fall towards zero. On Tuesday, shares of SNDL dropped by a further 2.03% and closed the trading day at $0.29, good for a new 52-week low closing price. Stocks were relatively flat on Tuesday, as investors weighed Wednesday’s FOMC rate hike announcement. The Dow Jones fell by a further 151 basis points and the S&P 500 fell further into bear market territory with a 0.38% loss. The NASDAQ managed to post a 0.18% gain for the day, as some tech stocks managed to bounce back from Monday’s market sell off.

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Tilray (NASDAQ:TLRY) and Hexo (NASDAQ:HEXO) are renegotiating their deal that will see Tilray acquire a significant stake in its domestic rival. Since Hexo’s enterprise value has fallen by 60% since the original agreement in March, the conversion price is falling from $0.85 per share to $0.40. The partnership will see Tilray be a third-party manufacturer for Hexo, and it will pay Tilray $18 million annually for special advisory services. Shares of TLRY were up by 1.49% while shares of HEXO were down by 7.79% on Tuesday.

Sundial stock forecast

Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NASDAQ:ACB) were two other Canadian cannabis stocks that were on the rise. The two companies gained 1.52% and 6.96% respectively during the session, after both stocks recently hit fresh new 52-week lows. The cannabis sector continues to be beaten down during this bear market, and many of these stocks, Sundial included, are trading at multi-year lows.