Buying pressure lifts Sundial Growers stock higher in today's trading

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Sundial growers rises 2.07% today

Highlights

Sundial Growers canceled its $27.2 million Ontario cannabis retail acquisition due to regulatory approval delays before the deadline.
The company will redirect funds from the failed deal to expand its share repurchase program, now authorized up to $100 million through late 2026.
Despite short-term bullish momentum and intraday strength, technicals signal an overbought condition with a likely rangebound action between $1.44 and $1.51.

Buyback funding redirected after failed Ontario acquisition

Sundial Growers recently announced it will not proceed with the planned acquisition of 27 Ontario cannabis retail stores from 1CM Inc., as regulatory approvals were not received before the agreed May 31, 2026 deadline. The approximately $27.2 million earmarked for the Ontario deal will now be redirected to the company’s share repurchase program, which authorizes up to $100 million in buybacks through November 20, 2026. SNDL has already acquired five retail stores in Alberta and Saskatchewan under the same agreement and has retired over 5.5 million shares for about $11.1 million to date.

Anton Kharitonov, expert at Traders Union, notes that SNDL's short-term momentum is masking deeper structural weaknesses. He points to the failed Ontario retail acquisition and the continued underperformance vs. the 200-day average as clear red flags for medium-term investors. Current positive intraday action is offset by mixed momentum signals and a complete lack of buy signals from key weekly indicators. Even the share buybacks look more like management defending the price than genuine value creation. "Short-term gains may entice, but I remain skeptical unless the stock does more than just defend technical lows — risk outweighs reward here."

Viktoras Karapetjanc, expert at Traders Union, remains constructive on SNDL's outlook. He sees capital being redeployed into buybacks as a flexible and shareholder-friendly move that supports the stock’s bullish structure. Management has shown adaptability by shifting strategy quickly after the Ontario deal fell through. Recent acquisitions in Alberta and Saskatchewan build a foundation for regional expansion. "The company’s capital allocation and ongoing buybacks reinforce my view that further growth opportunities remain firmly on the table."

Parshwa Turakhiya, analyst, views SNDL as capturing short-term trader interest with positive intraday sentiment and a move above its short-term moving averages. He highlights that momentum indicators flag overbought territory, so potential for quick pullbacks exists. Turakhiya believes price volatility is likely to remain elevated in the immediate sessions as the market reacts to news flow and technical levels. "For now, nimble traders should monitor $1.44 and $1.51 closely — sentiment sets up rangebound opportunities but not a breakout just yet."

Mixed momentum signals amid overbought risk and resistance levels

Sundial Growers is currently trading above its 20-day and 50-day moving averages ($1.42), but remains well below the 200-day average ($1.82), indicating a short-term bullish bias with lingering longer-term resistance. The nearest dynamic resistance is around the 50-day moving average at $1.42, with Ichimoku's Kijun level at $1.57 serving as a higher resistance area.

Momentum readings are mixed. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) signal indecision, while the Relative Strength Index (RSI), Commodity Channel Index (CCI), and Stochastic RSI show moderately positive momentum, with Stochastic RSI indicating an overbought condition. Bull/Bear Power (BBP) is positive, confirming that buyers currently dominate intraday momentum. The stock is up $0.03 or 2.07% today after opening with a modest upside gap and is trading near the day's high, with intraday volatility at 2.07%. Intraday price action shows solid strength toward highs, consistent with the current momentum readings, though signs of overbought conditions warn of possible near-term pauses or reversals.

Earlier, analysts noted that Sundial Growers exhibited mixed technical signals, with broad downside risks overshadowing the potential for sustained gains. New developments—especially the redirected capital from the shelved Ontario acquisition—reinforce this cautious outlook, making it critical for investors to closely watch the $1.44 support level as a trigger for potential renewed selling pressure.

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

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