SNAP earnings left a decent gap down, back to the recent swing lows. That gives us 3-5 days worth of trapped longs to work through.
There's a real possibility that we just see a lower low divergence where the selling is truncated and we start establishing a new trading range.
What I'd really like to see is a good selloff down to the 300 area. That's where it makse sense to start selling put spreads or layering into call buys.
295-305 is the retest of the prior resistance and potential support.
That's not the big one, the big one is the volume shelf and the swing AVWAP from the march 2020 lows.
The way we're headed, those will coincide at about the same time at around 281. If we get that, especially with speed or some kind of a gap down, would be an absolute gift.
There's a real possibility that we just see a lower low divergence where the selling is truncated and we start establishing a new trading range.
What I'd really like to see is a good selloff down to the 300 area. That's where it makse sense to start selling put spreads or layering into call buys.
295-305 is the retest of the prior resistance and potential support.
That's not the big one, the big one is the volume shelf and the swing AVWAP from the march 2020 lows.
The way we're headed, those will coincide at about the same time at around 281. If we get that, especially with speed or some kind of a gap down, would be an absolute gift.