SNAP dominated by bears dragging the market lower throughout the day
Snap Inc. Class A (SNAP) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
SNAP finished the week -0.31% lower at 19.05 after losing $0.20 (-1.04%) today, slightly underperforming the S&P 500 (-0.9%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SNAP as at Jan 24, 2020):
Friday's trading range has been $0.91 (4.62%), that's far above the last trading month's daily average range of $0.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SNAP.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 10th, SNAP actually gained 3.39% on the following trading day.
Prices are trading close to the key technical resistance level at 19.29 (R1). After having been unable to move lower than 18.91 in the previous session, Snap found buyers again around the same price level today at 18.84.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Snap. Out of 15 times, SNAP closed lower 53.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.33% with an average market move of -3.00%.