Sundial Growers Inc (SNDL) Stock Price and Forecast: Why is Sundial going up?
- Sundial (SNDL) gets high as stock pops 27% on Friday.
- SNDL and other cannabis grower stocks pop on legislation hopes.
- Sundial (SNDL) stock back up on strong earnings and buyback.
Sundial Growers (SNDL) stock popped big time on Friday as it registered a gain of over 27%. The stock and other cannabis stocks are high right now (pun intended) as hopes grow of US decriminalization. Sundial had the added impetus from a strong earnings report and a share buyback program. This set a fire under the stock and saw it surge on Friday.
Sundial Growers (SNDL) stock news
Earnings helped the stock surge as Sundial posted earnings of $11.3 million CAD versus a loss of $71.4 million CAD a year earlier. The company also revealed it is to buy back some $100 million CAD of its own shares. So-called "pot stocks" have been benefitting from increased hopes of regulatory reform and the latest news in this regard was a Reuters report on Friday that the Republican Nancy Mace was developing a bill with aims to bring it to the House of Representatives before November is out. However, caution should be urged as the article also pointed out how few weeks were left in this legislative year and 2022 would see politicians tied up with mid-term elections meaning some legislative agendas may take a back seat.
Sundial Growers (SNDL) stock forecast
The move on Friday was extremely powerful and has taken Sundial (SNDL) out of the long-term slow decline pattern it has been in since June. What is also interesting is that the move stalled right at the 200-day moving average. Getting above there is the big prize and once through it would be on to try the next resistance at $1.20-the yearly volume-weighted average price (VWAP). Volume from $1 to $1.20 thins out nicely meaning the move from $1 to $1.20 should be easy to make. $0.78 remains support, being the point of control and holding above here does keep SNDL bullish in the short term.
We have to urge some cation this one is volatile even by the standards of other meme stocks. Witness the RSI being overbought. The last time the RSI was up here SNDL collapsed back in June. We would never be short a penny stock but just use caution this is extremely volatile so please use stops.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
