Will SNDL stock hold the $1.14 support as seller dominance continues?

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SNDL drops 3.67% to $1.18 today

Highlights

SNDL stock trades below short, medium, and long-term moving averages, maintaining sustained bearish momentum.
Momentum indicators confirm a negative trend with oversold conditions and sellers dominating intraday action.
Price closed at $1.18, down 3.67% today, with the expected trading range at $1.14 to $1.22 and high risk of further downside.

Persistent downtrend confirmed as resistance and momentum weaken

SNDL is trading below the MA-20 at $1.21, the MA-50 at $1.23, and the MA-200 at $1.42. The Ichimoku Kijun sits at $1.21 and serves as immediate resistance. Momentum readings are negative, as both MACD and ADX signal a persistent downtrend. The RSI is at 33.78, indicating a sell reading, while CCI reflects oversold conditions and Stochastic RSI is neutral. Bull/Bear Power shows intraday seller dominance, and the Awesome Oscillator supports the continuation of the negative trend.

Sideways movement expected as resistance and support define scenario

Over the coming days, SNDL is expected to trade within a typical volatility band of $1.14 to $1.22. The primary scenario sees price movement sideways in this corridor. A modest rebound could occur if the stock breaks above the $1.21 resistance, which may prompt an intraday momentum shift. Conversely, a decisive move below $1.14 would likely accelerate downside pressure and deepen negative sentiment.

Anton Kharitonov, expert at Traders Union, sees sustained technical weakness in SNDL as the stock remains below all major moving averages and shows negative momentum. He notes that seller dominance is evident, with key indicators pointing to a continued downtrend and oversold signals providing no clear catalyst for reversal. The base case is a sideways move between $1.14 and $1.22, with risk to the downside if $1.14 breaks. "Until SNDL can reclaim $1.21, I remain defensive and see no clear setup for a rebound."

Earlier, analysts noted that SNDL remained under pronounced selling pressure, with technical signals aligning to support a continued bearish outlook. The current analysis reinforces this perspective, highlighting that as long as SNDL trades beneath the $1.21 resistance, risk remains skewed to the downside with $1.14 serving as the next crucial level to watch.

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.