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SNAP Inc. (SNAP) - Bulls Remain in Charge; $18 High to be Challenged

SNAP Inc. $SNAP has been retreating since late July after it tagged $18 a share. This follows a persistent rally from late 2018, when price bottomed at $5 a share. After tagging $18, price retreated throughout August until finding support around $15.

SNAP Daily Chart

(click to enlarge)

Bulls in Charge:
- There are several bullish signs. Let's go back and consider the fact that there was strong volume in the latest bull run in July. 
- Next, the pullback has been choppy relative to the bull runs, which have been sharper. This suggests that the primary trend is bullish in this daily-candle chart.
- Furthermore, note that when price bounced off $15, it held above the rising trendline coming up from the $5.00 low.
- Price-moving average dynamics also reflect a bullish market.
- Finally, the RSI held above 40 again, which reflects maintenance of the prevailing bullish momentum.
- The price action is probably the most telling - price broke above a recent falling trendline resistance and made a high on the month, above a previous high. 
- This bullish breakout suggests that not only is the overall picture still bullish, the short-term mode is returning to the bullish state after the July-August consolidation.
- Looking at the weekly chart, we should note that the ability to stay above $16.85 would first challenge the current high-on-the-year at $18. It would also open up the 2018-high around $21-$21.15.

SNAP Weekly Chart

(click to enlarge)

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