Send me real-time posts from this site at my email
Fan Yang

Snap Inc. (SNAP) Extends Bullish Breakout and is Cracking Resistance at $14 After an Analyst Upgrade

Snap Inc $SNAP appears to be on its way to recovery after a yea and a half of decline from highs above $28 to lows around $5 in late 2018. In April, we saw a bullish breakout and I noted that upside will likely be limited to $14. 

Snap Inc. $SNAP in a Bullish Breakout But Upside Likely Limited to $14

With price rallying sharply against this resistance, I would revise my conservative outlook and look for upside to $17 and possibly $20 this year.

SNAP Daily Chart

(click to enlarge)

Bulls Taking Over:
- First there was a completed price bottom in February when price broke above $7.50. 
- SNAP never looked back after than, eventually breaking above the 200-day simple moving average (SMA), another key pivot and a falling trendline in April.
- Eventually we saw price consolidate. 
- But SNAP held above $10, above the 200-day SMA and above the falling trendline. Furthermore, the RSI held above 40 for the most part. These were signs that bulls have taken over.
- This week, price pushed sharply past the consolidation range and is now cracking the $14 resistance. 
- Maybe we will see some resistance here around $14 as the week closes. But as long as price holds above $12, I think there will be bullish pressure to push above $14 towards the next pivot around $17, and eventually the $20 handle in 2019. 

The media is attributing this week's rally to an analyst upgrade on SNAP.

Snap stock extends rally after analyst upgrade

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue