What is up, everybody welcome to trey's trades, where we get technical analysis on different stocks in the stock market, as well as potential buy, hold or sell opinions on these given stocks. I like the preface by saying that i am not a financial advisor nor expert. I am just somebody i'm doing on youtube, so take what i say with a grain of salt. The reason that i started this channel is because a couple years back, i was about thirty thousand dollars deep and some pretty bad medical debt, and i was very fortunate to have some close family friends and mentors that pushed me to work really hard and invest.

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So today we're going to be looking at ticker symbol, sndl sundial growers incorporated, and let me tell you what i've gotten a lot of requests to cover this stock and uh. It's not surprising considering how much volume this stock sees on a day to day basis, i mean a low day you're, looking at 5 million shares in a 30 minute window, uh very easily pushing over 100 million shares traded every day and then yesterday, even more than That, as you can see, but uh it's it's been requested quite frequently, and you know i don't i don't dabble in the stock i'll be completely transparent and open up my my positions at the moment um, i i'm an apxt bngo fuel cell jagaxley microvision. These are my. This is my portfolio at the moment.

Microvision hitting me pretty hard right now, but i do believe in them long term. So i'm willing to wait this out anyways, i didn't have a position in sundial um, so i i i just needed to close disclose that right off the bat, but we are going to give you a very straightforward technical analysis, perspective on the stock and uh discuss A couple different things we'll talk about the overall volume trend: we've got the uh the 20 day volume weighted moving average pulled up which takes into consideration the overall volume and it trends a an average valuation line. Based off of that, then we do have the 200 ema exponential moving average uh pulled up, which is the 200-day moving average price valuation, and we've got some indicators here that are actually pointing to a very bullish sign uh, it's it's looking pretty decent. So we'll talk about that, we'll talk about the rsi uh, we'll talk about bullish and bearish trends over the past uh 10 days, or so, where i see the stock going and we'll cover this on a macroscopic and microscopic point of view.

So if you don't know what uh, what sundial growers is, they are a cannabis company and we'll just read you off their description, real quick, so they engage in the production and distribution of flour, pre-rolls and vapes. It operates through the following segments: cannabis, ornamental flowers and corporate. The cannabis segment includes legal cultivation and distribution of cannabis products under federally regulated licenses issued by health, canada. The ornamental flower segments covers the legacy operations of bridge farm.

The corporate segment represents corporate activities and items not allocated to reportable operating segments they're from canada, a very close to the homeland, guys i'm from minnesota. If you couldn't tell by my accent, i never hear it, but whenever i go down uh anywhere near down south, you know even iowa or nebraska they're like are you from minnesota yeah? I guess so. Their market cap looks uh, pretty small. You know nothing.

Crazy! 555 million dollars, but there is one thing that stands out to me: in particular: they have reached 3.88 cents in the past and if we do zoom out you know to two years ago, you can see that is in fact true uh. We can. We can actually see higher than that. You know three three dollars and 28 cents for a 52 week high, but they have been all the way up to 13.

You know back in 2019, so um. The potential upside is extremely high right, we're trading at 60 cents right now. So if you got it right now we got back to all-time highs, you'd be sitting pretty pretty filthy. You know it'd be pretty solid and there is another thing that i actually do like um, that i found on the internet and is sundial growers stock is now a debt free company as of january 4th, and if i had to guess.

That is why we saw this initial um spike. You know in volume here on the charts. If we come back and look at this, let me change it to a 15 minute yeah, so it's a pretty huge bump in volume and i'm assuming that has a lot to do with it. You know today is the seventh, so that was on the fourth.

So if we look back sixth, fifth, fourth yeah, you can see a pretty hefty spike in volume right there. So um, that's uh. That is what it's looking like to me is the reason and that's a that's a pretty big deal right. You know um, they had a 227 million dollar debt through a mix of asset sales, debt, equity, equity swap capital raises, and cash repayments they were able to pay off.

But if the third quarter, financial and operational results are any indicator, the company still has a long way to go. Uh revenue came in at 9.85 million cid missing estimates by 7.11 million net loss is 71.4 million. So i'm gon na leave this in the description box. Down below, but you can see that there's there's definitely still some underlying things they need to work on as a company um.

You know the financial situation uh. If we, if we take a look at it, we can probably take a guess at how it looks. You know their gross profit, not terrible. I mean this is actually like 30 million dollars, so uh you're looking you're looking pretty decent 39 million.

Oh gosh. I have to sneeze, but excuse me guys, jesus that was wild. Uh 39 million for 2019, 366 000 for 2018. Um yeah, nothing, nothing out of the ordinary.

I mean it's, it's good to see the growth for sure right um! That's that's probably the most promising thing, but let's take a look at the technical analysis, because there are some bullish indicators to me on the on the charts that i'm actually really really liking. So i'll start off by talking about levels of support and levels of resistance. That we're currently looking at so on the 10-day chart. We do have a pretty solid support level right here at 0.5077.

This has acted as resistance in the past. We have one two different touch points, a breakthrough and then it acted as a very solid level of support right here you can see this is a level of resistance in the past and once we were able to push through it, it's been holding up pretty well Beyond that, we are looking at another level of support right around here at uh that 200 ema man. I can't read that at 0.5808, another pretty solid level of support you can see it's it's acting right here was the previous level of resistance. One two three four different touch points: five different touch points: i'm really liking that right now and then you know if we do um break through that.

I do enjoy this as another level of support at 53 cents. We've got one two different contact points right here: uh three, four: these were previous levels of resistance, so i'm really liking that i'm liking. How that looks right now, um pretty solid movement. Honestly, if we look here, you know, we've got one two, three very solid bullish days and a very huge gap up yesterday, which is a huge bullish.

Sign. That's uh! That's that's! Not that's not anything to joke about! That's for sure. So if anything momentum is definitely on on our side here, right, um and then we're going to look at a couple levels of resistance. So we are currently trading at 64 cents or so 65 cents.

You know the overarching resistance is going to be 71 cents right here and then before we reach that we're going to have to break through very likely 67.07 and it's pretty possible that you're going to see a wall. You know in this area on the on the charts. It might take a little bit a couple couple whacks to break through 67 cents, but if we can break through 67 cents, then 71 cents does seem very doable and if we can break through 71 cents, the next logical barrier to me is going to be. You know cracking through a dollar, so um you're going to want to watch for that on the on the charts.

Here it is going to be a huge help to you, uh just to keep an eye on these levels. Now i have the uh the 20 day volume weighted moving average pulled up, and this just indicates you know um how bullish or bearish we're looking. You know when you take into consideration the average volume - and this is a very helpful tool for day or swing traders when you're trying to make a very quick witted decision on okay, we're. Are we looking bullish? Are we looking bearish uh? You can treat this as a level of support or resistance, depending on which side of the line.

This is hugging right. So if we zoom in right now, you can see that we're actually just barely above this, so this is bullish territory. This would act as a level of support, whereas if we were under it, this would act as a level of resistance. You know that's that's a great tool for uh day or swing traders, and then there is a very bullish sign when we look at these two indicators: the 200 ema, the 200 exponential exponential moving average um.

We have a crossover right here and i have always noticed this in the charts that anytime, you have the 20 day volume weighted moving average cross above that's this light blue line. This is the this is the 200 ema anytime. You have this 20 day volume moving average volume weighted moving average cross over the 200 ema, that is a huge bullish indicator and the farther up of this gaps from the 200 ema, the more bullish. This is looking right.

So, let's pretend that we can't see this part of the chart right here. All you can see is: oh, we have a crossover right here. We have a huge jump up. What do you think is going to happen right? We can't predict the future right but uh.

Historically speaking, when you see this crossover gap, we see a huge spike up guys. We see a huge spike up. That same thing happened right here with uh with the charts right. You see this crossover on the on the 20-day volume moving average in the 200 ema, and we see some pretty harsh movements and i'm really liking.

How that looks right now, the farther away this 20 day vwma is from the 200 ema, the more bullish we're looking guys, and once you see that crossover to me, that's a sign to pull the trigger, and furthermore, i really like this right here. So i'm gon na explain what this is real, quick just so you can understand um. This is a bullish flag and i do have pulled up here just a line. So if we connect right here where we gapped up from the after hours to the pre-market right and we, we assume a trend line on that on that gap up - and we connect this right here to that trend line right.

This is a bullish flag and what that means is uh. We we see this pattern of okay um, once a stock, i'll kind of try and draw it out for you once the stock shoots up like this right, you typically see a little bit of consolidation. Go something like this down up down? Oh no, i missed down up down up and then, after that, typically you see it pushed through a level of resistance in that bullish, flag, bam. And if we take, you know a triangle right here, not a triangle, a diamond and we fill in the blanks come on, come on.

Daryl do what you're supposed to do and we fill in the blanks. Oh, i've got too many lines on here guys there we go all right now we're cooking with crisco, okay. Well, you get the idea. Let's, let's uh, go like this move it back.

You get a bullish flag and that's what we're seeing right here on on the charts on sundial, and that is a very bullish indicator and if we can break through this, this uh metaphorical barrier. This metaphorical level of resistance. I do expect that we'll continue to see another green day. That is a huge bullish indicator to me, as well as the overall volume that pumped into the stock yesterday.

That is a huge sign that this thing could potentially keep running right. This is the first time that we've seen that much volume in a hot minute and the rsi indicator actually looks really good. The relative strength index anything over 70's ever bought. Anything under 30 is oversold.

We're sitting really close to 50 guys. So once we saw that huge run-up uh, the correction was not very steep right. We uh we just approached. You know normal territory, anything between 40 and 60 you're.

Looking pretty solid and uh. You know i really like that. Actually, 54 is a very nice rsi indicator. Number, so if you are looking to get into the stock, you know, i would look for anywhere around this 58 cent mark.

This 53 cent mark this 50 cent mark uh. If you do see a pullback, you know how likely that is. It's tough to say. I think 58 cents is uh is a very reasonable level of of support.

So if you see a pullback to that to that level, i do think that'll be a fairly safe entry point, but even better is gon na be 53 cents. So do watch for that and then uh exit strategies, if you're into long-term investor. I don't think you're looking at getting out of this for anything less than a couple: bucks and honestly, probably double digits. If you look back on two years ago, when this was over ten dollars per share um, so you know just watch for a really solid entry point if you're looking to either dollar cost average up or down or establish a position into the stock, just because it's Looking pretty hot um like i said, i really do like this uh, this bullish flag.

That does look really clean. If we look at the one day, one minute chart, we do have a couple levels of support and resistance. We've got 59 27 as a primary level of support, followed by i pretty i like this quite a bit. These candle wicks are very indicative to me.

Candle wicks tell you a lot about buyer emotion, um, so 6139 is another level of support and then we're looking at some immediate sides of resistance. You know right around here at 66.97, followed by 68.9 and then lastly, um we're gon na roll with what was in the actual regular market hours, 69.84 and currently trading at 64.44. So very nice, solid consolidation. I really like that.

Uh, this bullish flag. You can kind of see it right here. You know, following that gap up bam, here's the flagpole, uh, here's, the consolidation bouncing up and down bouncing up and down bouncing up and down it's loading up like a spring guys, that's a that's a pretty polish sign and, like i said, i'm going to disclose. I don't have a position in sundial, you know if uh, if it just pops off power to you, i'm very happy uh tied up in jagx and bngo, where i've i've turned over 100 profit in both already so i cannot complain, and i wish you guys luck.

So i hope that was helpful for you guys, uh. I know there's a lot of people out there that are interested in sundial. You know it must have nothing to do with the fact that they grow uh grow flowers. I'm guessing you know um.

I think it's. I think it's the other plants that they that they're harvesting but um. I wish you guys all good luck with sundial. You know it's uh, it's a very interesting stock and it does seem like you know, it's got some potential with with where things are going with joe biden in office and and uh.

You know a democratic party. I do think it's likely. We see weed legalized. You know states wide and you know the next four years, so that would be a huge catalyst for sundial um.

It seems like it's got potential, so i wish you guys the best of luck. Thank you for watching the video. Please drop a like if you enjoyed, it really does help support the channel. Consider subscribing if you'd like to see more content like this and lastly, i do have an affiliate link in the description box for tubebuddy.

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So that's what i have for the video today. Thank you for watching my friends and i will see you all next time. Peace.