Price action in SnapChat has confirmed a bottom bullish reversal and therefore bullish trend starting from December 21, 2018 should continue.
Over a year of price action is presented in today’s SnapChat analysis on a logarithmic scale. Immediate attention is drawn to the long term bearish trendline used to highlight the trend in SnapChat’s stock price ever since it reached a price high of $21.22 on February 07, 2018.
The chart pattern used in this analysis to describe price action from November 20, 2018 to January 30, 2019 is a Head and shoulders bottom (or inverted Head and shoulders) pattern, which is ideally bullish. Price closed above the neckline of the pattern on January 30, 2019 followed by a rising gap (or window) which also supports a bullish bias for SnapChat.
A pull back in price to retest the neckline is plausible as part of the development of the bullish price swing from December 21, 2018. Price closing below $4.90 invalidates the chart pattern mentioned above.
Entry of long (buy) positions on a breakout above the February 01, 2019 price high of $7.14 could be considered as a conservative strategy or used to add to existing long (buy) positions.