I've wanted to short this stock a while ago, but I think now is the right time to do so.
It's a short-term trade and I'm targeting at least $10.00. Might hold this for longer given the circumstances.
It's a risky trade and might not work out.
My favorite trading indicator and the simplest I have seen having great accuracy with every cross
Buy: Blue line crosses above Green line
Sell: When Heikin Ashi turns red after the buy signal
This is my first post so keep in mind I am new!
1) SNAP recently touched the weekly trendline for the third time and bounce off.
2) RSI is approaching overbought territory.
3) Fibs are around the 61.8 retracement mark.
Look for shorts to take control and booking of profits from traders and investors. Snap has more than doubled since late December. It looks ripe for a pull back.
Snapchat has ran +141% in 12 weeks. The company has no profits, no user growth and massive debt. They are currently trading at 12x Revenue, for comparison FB is 8x Revenue, Twitter is 8x revenue and both of those companies are profitable and have user growth, SNAP doesn't. This rejection has already begun and got demolished at the trend line from the all-time...
Building upon my last idea
Did a rough sketch with fib levels. I have an intuition SNAP will regain its place near its initial offering very soon. Just doesn't seem right that a company that is so ingrained in youth culture will not be able to profit in some way and it seems that even big...
After a sharp rise of about 12% the RSI has become highly overbought.
Fundamentals for this company don't look to good with massive losses. Based on this I would say this stock is far from a fair value.
It looks like snapchat started to tumble over. For now I'm eyeing at 7 usd as a target.
Depending on what the general stockmarket is doing we can expect it to...
This is an update from my count! As it hasn't made a new high (break above 0.5 fib), i still strongly believe in this count (which also hasn't broken any of Elliott's rules yet!). From an indicator point as well, we can also see that the MACD has crossed bearish! Historically at high levels like these on the MACD, this is very bad for snapchat. Very good...
Using a trend based extension, this chart looks at the upward velocity snap has shown around since last ER. The push that sent it past $10 was an analyst upgrade. It seemed to me that they weren't really pushing the advertising platform. The recent announcements about entering the gaming space made sense as they are going to pursue that to bring in the revenue.
SNAP is very overextended, up 141% in last 12 weeks (high to low). RSI currently overbought. Fundamentals still awful with no user growth and no profitability. Expect this pattern to break at around $10 at the end of May. From this point on (March 15, 2019), I expect a pretty significant pullback!