Two months ago, the Reddit traders and day trading community thought investing was easy. Everything was going up, but things sure have changed.
Some of the stocks that were favorites in February have melted down and it looks like these trends will continue.
See Also: A Short Seller Joins Benzinga’s ‘Power Hour’ To Talk GameStop. The Rest Is History.
On Jan. 28, shares of GameStop hit $483. This was the first bubble. They then trended lower and reached $38.50 on Feb. 19 before ripping higher again. The second bubble peaked on March 10 at $348.50.
Now shares are trading around $150 and the bears are in control.
There may be some type of bounce, but there’s also a good chance that the downtrend continues. The average daily volume is declining, and this is usually a bearish signal.
Zomedica’s high was $2.91. This was on Feb. 8. They made a second peak at $2.72 on March 16. Since then, they have been in a steep decline.
Now they’re below the psychologically important $1 level. There will be a lot of resistance there because investors like placing orders at round levels. This could put a top on the stock.
Sundial Growers hit $3.96 on Feb. 11. Since then, shares have declined and like ZOM, they’re now also below the important $1 level. They may have a difficult time working through the resistance.
It isn’t surprising that this stock is trending lower. Over the past two years, Sundial has lost about $400 million. For a stock to do well long-term, a company actually needs to earn money.