Once again, shares of Sundial Growers Inc. (NASDAQ:SNDL) have reversed after hitting resistance at the important 90-cent level.
The same thing happened in August and then again in November.
See Also: Why Sundial Growers Shorts Are About To Go Up In Smoke
There is a large group of investors who are all trying to sell their shares at the 90-cents level. When the stock hit this resistance and couldn’t get through it, some of the sellers get concerned that other sellers will eventually push the stock lower.
They decide to sell at lower prices, and this causes a snowball effect. It forces the stock into a downtrend. This could be happening again with SNDL.
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