Snap Inc. (SNAP/NYSE): general review
17 December 2018, 12:07
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 6.55 |
| Take Profit | 7.25, 8.00, 8.50 |
| Stop Loss | 5.85, 5.75 |
| Key Levels | 5.50, 6.50, 7.50, 8.75 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 5.45 |
| Take Profit | 4.25, 3.50 |
| Stop Loss | 6.25 |
| Key Levels | 5.50, 6.50, 7.50, 8.75 |
Current trend
Snap Inc. shares are trading now at a premium of 4.4% of the historical minimum, which was updated at the beginning of last week. A drop in the issuer's quotations from the February 52-week high exceeded 70%. In less than two years, Snap Inc. spent over $1.5 billion. At the same time, in 2019, the company will continue to attract funds, increasing negative cash flow amid a slowdown in user growth.
For the last week of the Snap Inc. shares rose by 2.07%. The S&P500 fell by 2.43% over the same period.
Support and resistance
The technical picture suggests a possible correction of the company's shares after a long fall. There is a classic reversal formation – the divergence of price and MACD indicator. The key range is 5.50—6.50. The signals of the indicators vary: the price has consolidated below 50 MA and 200 MA; MACD histogram began to rise.
A comparative analysis of the multipliers of the company and its competitors in the industry indicates the neutrality of #SNAP.
Support levels: 5.50.
Resistance levels: 6.50, 7.50, 8.75.
Trading tips
If the price consolidates above the resistance level of 6.50, a correction in the company's shares is expected. Potential profit levels are 7.25, 8.00 and 8.50. Stop loss can be set at 5.75.
If the price consolidates below the 5.50 mark, it will be possible to consider selling #SNAP. Take profit can be set within a range of 4.25–3.50. Stop loss is 6.25.
Trading scenarios will be relevant for 3 days.
Snap Inc. shares are trading now at a premium of 4.4% of the historical minimum, which was updated at the beginning of last week. A drop in the issuer's quotations from the February 52-week high exceeded 70%. In less than two years, Snap Inc. spent over $1.5 billion. At the same time, in 2019, the company will continue to attract funds, increasing negative cash flow amid a slowdown in user growth.
For the last week of the Snap Inc. shares rose by 2.07%. The S&P500 fell by 2.43% over the same period.
Support and resistance
The technical picture suggests a possible correction of the company's shares after a long fall. There is a classic reversal formation – the divergence of price and MACD indicator. The key range is 5.50—6.50. The signals of the indicators vary: the price has consolidated below 50 MA and 200 MA; MACD histogram began to rise.
A comparative analysis of the multipliers of the company and its competitors in the industry indicates the neutrality of #SNAP.
Support levels: 5.50.
Resistance levels: 6.50, 7.50, 8.75.
Trading tips
If the price consolidates above the resistance level of 6.50, a correction in the company's shares is expected. Potential profit levels are 7.25, 8.00 and 8.50. Stop loss can be set at 5.75.
If the price consolidates below the 5.50 mark, it will be possible to consider selling #SNAP. Take profit can be set within a range of 4.25–3.50. Stop loss is 6.25.
Trading scenarios will be relevant for 3 days.
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