Sundial Growers (NASDAQ:SNDL) Stock Is Moving in a Tight Range: What to do Now?
In early June, the meme stock craze return pushed Sundial Growers (NASDAQ:SNDL) stock up, with shares surging from $0.72 to around $1.3 per share. However, the stock has since pulled back and dropped to below $1 per share. Retail traders in Reddit dived-in in large numbers, but most have now cashed out.
Only 13.7% of SNDL’s float was sold short, and thus it is unlikely to categorize it as a short squeeze stock. Also, even if SNDL were to be one, that doesn’t guarantee that the stock will surge back to the highs set in the first meme stock craze when it almost reached $4. Nevertheless, it seems short squeeze trading is losing momentum, and there is little chance that the names will see a parabolic run to the levels of AMC and GameStop.
But there is a possible return/risk factor in SNDL’s corners, which is pot legalization. Federal legalization of marijuana could push the stock higher, and it could be sensible to enter a position at current prices. So, in the coming months, it is worth watching SNDL.
Market Reaction:
On Monday, SNDL stock fell 3% at $0.8646 with more than 72.83 million shares, compared to its average volume of 207.84 million shares. The stock had moved within a range of $ 0.8610 – 0.8909 after opening the trade at $0.8909. Over the past 52-week, the stock has been trading within a range of $0.1380 – 3.9600.
