Sundial Growers stock: Cautious trading follows historic profit as price lingers below key averages

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Sundial Growers drops 3.83% to $1.51

Highlights

Sundial Growers delivered its first positive adjusted operating income in 2025, doubling free cash flow to CAD 18 million on CAD 946 million revenue.
Cannabis segment growth, operational efficiencies, and Indiva acquisition offset declining liquor retail, with management emphasizing share buybacks and ongoing investments.
Shares trade under key technical benchmarks amid broad selling, with SNDL expected to consolidate between $1.48 and $1.58 and downside bias prevailing.

Positive full-year income as cannabis gains offset retail declines

On March 12, 2026, Sundial Growers reported its fourth quarter and full year 2025 financial results, achieving its first year of positive adjusted operating income and doubling annual free cash flow to CAD 18 million. Net revenue rose to CAD 946 million for 2025, with positive momentum in the cannabis segment offsetting a decline in liquor retail. Operational efficiencies and integration of the Indiva acquisition were highlighted, along with ongoing buyback activity of 15.1 million shares since 2024 and continued investments in new store openings, ERP integration, and private label initiatives. Late-year slowdowns in the Canadian cannabis and liquor markets were also noted, though price action has remained under broader selling pressure.

Bearish momentum persists as mixed signals cap near-term upside

Technical signals for SNDL reflect a bearish setup, as the price remains below all major moving averages (MA-20, MA-50, MA-200). Immediate resistance is established at the Ichimoku Kijun ($1.55). Momentum indicators are mixed: MACD gives a strong sell, ADX is neutral, RSI D1 is balanced near 51.94 and suggests a slight buy, but Stoch RSI and CCI both indicate overbought conditions, highlighting limited immediate upside. BBP is slightly positive, supporting mild buyer presence within the session, while the Awesome Oscillator gives a strong buy signal and points to stabilization attempts. The asset opened with a mild upward gap but declined toward session lows, with a moderate range and notable intraday volatility.

Continued consolidation risk as sell signals dampen breakout odds

Over the next five trading days, SNDL is expected to trade within a $1.48 to $1.58 volatility band relative to current levels. The probability of a sustained upward move is currently very low (below 20%) given persistent weekly sell signals, and prices are more likely to see continued consolidation or further decline. A clear bullish breakout would require closing above the $1.55 – $1.58 resistance zone, while a break below $1.48 would suggest accelerating downside momentum.

Viktoras Karapetjanc, expert at Traders Union, sees Sundial Growers maintaining impressive progress on fundamental metrics despite recent technical weakness. He notes operational improvements, positive adjusted operating income, and disciplined capital allocation. Broader market pressures and mixed momentum keep the near-term outlook consolidative. The analyst believes a clear breakout above $1.55 – $1.58 is needed for a bullish shift, but structural improvements support longer-term optimism. "If SNDL sustains its operational gains through market headwinds, I expect buyers to step in quickly once key resistance is cleared."

In a recent review, analysts observed that SNDL faced persistent selling pressure and bearish momentum despite improving fundamentals and operational efficiencies. The current technical setup and muted upside probability underscore that the prevailing risk remains to the downside, making price action near the $1.48 support a crucial level to watch in the sessions ahead.

Source of Data: SNDL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.