SNAP climbs to highest close since July 20th
Snap Inc. Class A (SNAP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SNAP finished Wednesday at 24.86 gaining $0.39 (1.59%), significantly outperforming the S&P 500 (-0.46%). Today's close at 24.86 marks the highest recorded closing price since July 20th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SNAP as at Sep 16, 2020):
Wednesday's trading range has been $0.80 (3.27%), that's slightly below the last trading month's daily average range of $0.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SNAP.
Buyers managed to take out the key technical resistance level at 24.65 (now S1), which is likely to act as support going forward. The last time this happened on September 11th, SNAP actually lost -0.25% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 26.76, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Snap. Out of 51 times, SNAP closed lower 56.86% 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 54.90% with an average market move of -0.81%.