SNAP has formed channel up & is testing lower band of channel. If support holds, go long for retest of highs at $26.50.
One of my favorite basic strategies is relative performance. SNAP has been a clear standout since September 3rd (first day of correction) - QQQ is down over 12% while SNAP is up over 3% (and at one point up 10%). In this sense I am looking for continued strength from SNAP as an ex-index play - countertrend plays that are not trending with overall market.
Good analysis. I would be leary of the decreased trading volume and 10-day EMA crossing below the 50-day EMA. A good one to watch if it can continue to trend above support.
UnknownUnicorn7308096
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@ProfessorBurns good points. Another note is that one might expect it to underperform on a bounce as it’s outperformed on the way down
ProfessorBurns
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@Techreturns, Looks good now. Could be ready to form the handle of the Cup and Handle pattern in your last chart. I don't think I have the guts to hop on the train but nice work.
UnknownUnicorn7308096
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@ProfessorBurns Thanks! I got a bit of help from overall markets but SNAP outperformed today on a big gap up which frankly surprised me. SNAP has had some decent momentum for pretty much all of 2020 at this point but what’s interesting is it’s been really solid since the whole FB/PINS thing. SNAP broke out to 52 week highs and is pushing again, TWTR had a big 52 week breakout that I covered, and PINS just broke out as well. Something going on with social media advertisers ex-FB to me. I’m happy to ride the momo. Fwiw I bought 26.50c 10/2 avg $.26 today as a partial roll from 25c.
ProfessorBurns
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@Techreturns, Excellent trade. Great time to take profits. Nice job making 100% profit: high risk, high reward.