BehindTheTrade

#SNDL - Weekly showing strenght and reversal signs

Long
NASDAQ:SNDL   Sundial Growers Inc
If we look at the weekly chart, I identified two main reasons why I consider 0.7$ being the bottom and why I think there are good chances that we can see higher levels soon:

1- Previous week candle was a piercing line candlestick pattern, with the opening below the previous candle close and with the close above the mid-body of the previous week

2- The price is reacting strongly with high volumes at the 0.72$ level, which is where most of the institutionals have their average purchasing price

In addition to this, just to estimate where the price might go by the end of this week, let's have a look at the average true range of the last 3-weeks: the price had an average extension from low to high of approximately 0.13$. This means that, starting from the assumption that the week will be a positive one, and having the low of the current week at 0.715$, this means that the price might "potentially" extend its movement up to 0.845$. This is pretty realistic and we of course hope that this will be just the beginning of the trend reversal.

Also, in the H1 chart, the head and shulder pattern that I shared few days ago, is going to complete its formation attacking the 0.795$ resistance level soon.

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