SNDL a MJ penny stock in reversal from trend down LONG
SNDL is shown on a weekly chart with a volume profile and VWAP band lines anchored back
three years. Perhaps due to recent news of potential federal legalization or other catalysts
SNDL is now above its pivot low. The EMA cloud ( periods 7, 21 and 42) is now green as
lines converged into a zero slope and are now rising. Price is now approaching the first lower
band line and will thus enter the fair value zone above the undervalued zone. A reasonable
target is 7.0 where the POC line of the volume profile is confluent with the black mean VWAP
line. The is more than 100% upside and will not occur quickly. Price may get spikes with
marijuana-related news along the way. A sign the trade is going bad is if both the faster green
RSI line and the slower black RSI line both go below the 50 level. The stop loss will be
at 1.86 below the EMA cloud. Accordingly. the risk is $0.50 per risk. If only $100 is to be risked
the trade can be 200 shares. Risk is off when price rises to $2.85 and the stop-loss is adjusted
to the entry price. Beyond $3.00, the stop loss can be adjusted to a trailing 10-15% or the
ATR. I see the last weekly candle as a Doji and so consolidation and price consensus making for
a best entry.
three years. Perhaps due to recent news of potential federal legalization or other catalysts
SNDL is now above its pivot low. The EMA cloud ( periods 7, 21 and 42) is now green as
lines converged into a zero slope and are now rising. Price is now approaching the first lower
band line and will thus enter the fair value zone above the undervalued zone. A reasonable
target is 7.0 where the POC line of the volume profile is confluent with the black mean VWAP
line. The is more than 100% upside and will not occur quickly. Price may get spikes with
marijuana-related news along the way. A sign the trade is going bad is if both the faster green
RSI line and the slower black RSI line both go below the 50 level. The stop loss will be
at 1.86 below the EMA cloud. Accordingly. the risk is $0.50 per risk. If only $100 is to be risked
the trade can be 200 shares. Risk is off when price rises to $2.85 and the stop-loss is adjusted
to the entry price. Beyond $3.00, the stop loss can be adjusted to a trailing 10-15% or the
ATR. I see the last weekly candle as a Doji and so consolidation and price consensus making for
a best entry.
Comment:
240 minute chart Zoom:
Trade closed manually:
Slight loss and overall closure of the position.
Comment:
Looking for a re-entry when a support level is found.