SNAP closes above its opening price after recovering from early selling pressure
Snap Inc. Class A (SNAP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SNAP ended the month 24.02% higher at 23.49 after gaining $0.40 (1.73%) today, slightly outperforming the S&P 500 (1.54%). Trading up to $0.38 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 23.20, the share confirmed its breakout through the previous session high after trading up to $0.47 above it intraday.
Daily Candlestick Chart (SNAP as at Jun 30, 2020):
Tuesday's trading range has been $0.99 (4.29%), that's slightly above the last trading month's daily average range of $0.97. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SNAP.
After trading down to 22.68 earlier during the day, the stock bounced off the key technical support level at 22.88 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 3rd, SNAP actually lost -2.38% on the following trading day.
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 "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Snap. Out of 148 times, SNAP closed higher 58.11% 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 54.05% with an average market move of 2.18%.