SNAP closes within previous day's range after lackluster session
Snap Inc. Class A (SNAP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SNAP finished the week 3.33% higher at 17.67 after gaining $0.12 (0.68%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SNAP as at May 22, 2020):
Friday's trading range has been $0.39 (2.21%), that's far below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SNAP.
Three candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
After trading as low as 17.29 during the day, Snap found support at the 20-day moving average at 17.43. The last time this happened on May 14th, SNAP gained 1.00% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 18.39 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 17.25 where further sell stops could get triggered. As prices are trading close to May's high at 18.46, upside momentum might speed up should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for Snap. Out of 2 times, SNAP closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 9.31%.