Snap Stock Continues To Fall: Could It See A Bounce Soon?

Snap Stock Continues To Fall: Could It See A Bounce Soon?

Snap Inc SNAP shares are trading lower Friday on continued weakness after Cowen Inc. downgraded the stock on Thursday from Outperform to Market Perform and lowered its price target from $75 to $45. The stock recently fell below a key support level and has been on a freefall since the support break.

Snap was down 3.15% at $37.16 Friday afternoon at publication.

Snap Daily Chart Analysis

  • Shares cracked below support in a sideways channel and have been trading lower since the break below the $48 level. This level may turn into a place of resistance in the future. If able to cross back above this level, the stock may find resistance near the $65 level.
  • The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish. Each of these moving averages may hold as an area of resistance in the future.
  • The Relative Strength Index (RSI) has been falling lower the past couple of weeks and now sits at 26 on the indicator. This shows the stock is in the oversold region and is seeing much more selling pressure than buying pressure. If the RSI continues to stay oversold the price will likely continue to fall lower.

(Click on image to enlarge)


What’s Next For Snap?

Snap stock falling below support is a bearish sign and shows bears are in control of the stock. Bears are looking to see the stock continue to trade below the support level and hold below the moving averages. Bulls are hoping to see a bounce and for the stock to begin to make higher lows. Bulls are eventually looking for a cross above the moving averages and the $48 level.

© 2022 Benzinga does not provide investment advice. All rights reserved.

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