Snap Inc SNAP shares are trading higher Friday after the company reported better-than-expected fourth-quarter EPS and sales results and issued first-quarter sales guidance above estimates.

Snap reported quarterly earnings of 22 cents per share, beating the analyst consensus estimate of 10 cents. The company announced quarterly sales of $1.30 billion, beating the analyst consensus estimate of $1.20 billion

Snap was up 51.84% at $37.20 Friday at publication.

Snap Daily Chart Analysis

• Shares are flying after the company saw good earnings and the stock is pushing back toward a key level that once held as support. Now that the price is sitting below the $48 level it may see resistance near that level if the price can reach it once again.
• 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) jumped higher Friday morning and now sits at 48. This shows that many buyers entered the market today pushing the stock price and the RSI higher. The RSI is near the middle line, showing that the stock has almost equivalent buyers to the number of sellers.

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What’s Next For Snap?

Snap having a large green day is a bullish sign for the stock. This shows buyers are moving back into the market again and if the stock begins to form higher lows it may start seeing a long-term upward trend. Bullish traders also want to see higher lows form and the RSI to climb back above the middle line and be able to hold above it. Bearish traders are looking for the stock to start falling and the RSI to fall back toward the oversold region.