TradeStation

High basing Pattern in Snap

Long
NYSE:SNAP   Snap Inc
Snap is an expensive growth stock. It’s the kind of name investors have mostly avoided this year, although recent weeks have seen a shift back to such companies.

This chart highlights SNAP’s last four months of consolidation. It isn’t exactly a cup and handle , but there are important similarities: It’s a high basing pattern well above old highs. There’s no single punctuated drop but a gradual fading as momentum slows, followed by incrementally higher lows. The social-media stock is also forming a tight range on the right side, suggesting a breakout may be imminent.

The key line in the sand may be around $64. Prices have challenged that level several times on an intraday basis without a decisive close above it.

There’s also potential support to the downside, with SNAP holding its 50- and 100-day simple moving averages ( SMAs ).

TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.

Comments

Where do you see this next week

Will it be back to 60-61? Or below
Reply