SNAP unable to break through key resistance level


Snap Inc. Class A (SNAP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team

Highlights

SNAP unable to break through key resistance level
SNAP still stuck within tight trading range
SNAP closes within previous day's range after lackluster session

Overview

SNAP finished the week 2.51% higher at 17.56 after losing $0.03 (-0.17%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (SNAP as at Feb 14, 2020):

Daily technical analysis candlestick chart for Snap Inc. Class A (SNAP) as at Feb 14, 2020

Friday's trading range has been $0.43 (2.45%), that's below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SNAP. Prices continued to consolidate within a tight trading range between 17.00 and 17.86 where it has been caught now for the whole last trading week.

One neutral candlestick pattern matches today's price action, the Doji. The last time a Doji showed up on January 29th, SNAP lost -1.36% on the following trading day.

Unable to break through the key technical resistance level at 17.80 (R1), the stock closed below it after spiking up to 17.86 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.

While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Selling could speed up should prices move below the close-by swing low at 17.17 where further sell stops might get triggered.

Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Snap. Out of 96 times, SNAP closed lower 56.25% 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 five trading days, showing a win rate of 57.29% with an average market move of -0.06%.


Market Conditions for SNAP as at Feb 14, 2020

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