SNDL Triangle Breakout! 30% move possible

1 feb 2021

SNDLSNDL is at the forefront of the robinhood/hedge fund fiasco and is getting extreme attention. Just search it on twitter and stocktwits to see what I am talking about. I don't normally trade penny stocks so I am treating this as a riskier lotto play. My current position in SNDL is at shares at .83 and $1 march calls. I played SNDL on the 27th and was able to lock in >100% on that beautiful gap up. Now I am back for another go.

Chart: there is a beautiful triangle pattern developing that is posting higher lows and becoming extremely tight. The key for a breakout tomorrow/tuesday will be the volume. I would love to see a bullish close and at least 1 billion in volume tomorrow. higher probability trade would be to wait for the triangle breakout with confirming volume. SNDL has received massive volume the past two days of trading (2bil and 1 bil respectively). Its 10 day average is 557 million. This is a pure momentum trade for me and I will likely have my stop loss under .72 as this confirms a lower low and failing of the triangle pattern.

Volume profile: the daily POC is at the .6940 range, I dont expect to still be in the trade if this lvl is ever reached. The POC for the past three days of trading is right at .8045 lvl, this is just about the current price level. If we cannot hold above this lvl then I would be weary entering the trade until it reclaims if you are not already in.

There seems to be a solid support at around .7496 and I currently have an extended hour order in to catch some dips in the morning if this happens. I have a hunch that SNDL will be gapping up. I am looking to scale out of the trade at $1, $1.20, $1.50. Good luck all!