Snap Inc. (SNAP/NYSE): general review
07 May 2018, 10:12
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 10.45 |
| Take Profit | 9.50, 8.50, 8.00 |
| Stop Loss | 11.50 |
| Key Levels | 10.50, 11.50, 12.40, 13.60 |
Current trend
Snap Inc. shares fell by 22.8% against the backdrop of the publication of the quarterly report on May 1, ending last week at a historic low of USD 10.79. The number of active daily users increased to 194.15 million, revenue increased by 54% YoY to USD 230.7 million. Both figures were below market expectations, which put pressure on the issuer's quotes. The new Snapchat design to separate the friends' content from the publishers' has worsened the company's results, but management is confident in the long-term perspective of the approach.
Last week, Snap Inc. share price decreased by 24.17%. S&P 500 index went down by 0.28% during the same period.
Support and resistance
#SNAP has been dominated by aggressive sales since the beginning of the month. At the moment, the company's shares are consolidating. The emitter found support at the level of 10.50. 11.50 is a "mirror" resistance level. The instrument has the potential to further reduce. Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200), and MACD is in the negative zone. Positions are better to be opened in line with the current trend.
Comparing company's multiplier with its competitors in the industry, we can say that #SNAP shares are neutral.
Support levels: 10.50.
Resistance levels: 11.50, 12.40, 13.60.
Trading tips
If the price consolidates below the support level of 10.50, #SNAP quotes are expected to fall. Potential profits should be locked in by orders at 9.50, 8.50 and 8.00. Stop-loss will be placed at 11.50.
A trailing stop is to be used for positions.
Implementation period: 3 days.
Snap Inc. shares fell by 22.8% against the backdrop of the publication of the quarterly report on May 1, ending last week at a historic low of USD 10.79. The number of active daily users increased to 194.15 million, revenue increased by 54% YoY to USD 230.7 million. Both figures were below market expectations, which put pressure on the issuer's quotes. The new Snapchat design to separate the friends' content from the publishers' has worsened the company's results, but management is confident in the long-term perspective of the approach.
Last week, Snap Inc. share price decreased by 24.17%. S&P 500 index went down by 0.28% during the same period.
Support and resistance
#SNAP has been dominated by aggressive sales since the beginning of the month. At the moment, the company's shares are consolidating. The emitter found support at the level of 10.50. 11.50 is a "mirror" resistance level. The instrument has the potential to further reduce. Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200), and MACD is in the negative zone. Positions are better to be opened in line with the current trend.
Comparing company's multiplier with its competitors in the industry, we can say that #SNAP shares are neutral.
Support levels: 10.50.
Resistance levels: 11.50, 12.40, 13.60.
Trading tips
If the price consolidates below the support level of 10.50, #SNAP quotes are expected to fall. Potential profits should be locked in by orders at 9.50, 8.50 and 8.00. Stop-loss will be placed at 11.50.
A trailing stop is to be used for positions.
Implementation period: 3 days.
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