Snapchat's Stock Bounces Off Support And Pushes Higher: What's Next?

Snapchat's Stock Bounces Off Support And Pushes Higher: What's Next?

Snap Inc. SNAP shares are trading higher Wednesday and look to have broken out of a technical pattern.

Snap was up 6.39% at $50.65 at press time.

Snap Daily Chart Analysis

  • Snap shares have pushed higher the past few days and look to be bouncing off of support in a technical pattern.
  • Support has been found near the $48 level in the past, and the stock was able to see a bounce here again in the past few days. The $65 level is where resistance has been found in the past and may continue to in the future.
  • 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) looks to be making a slight bounce after forming a higher low and now sits at 39. This shows buyers have been moving into the stock once again although the overall amount of buyers is still outweighed by the amount of sellers.

(Click on image to enlarge)


What’s Next For Snap?

Bullish traders are hoping this bounce is the beginning of an uptrend toward resistance. If the stock can begin to form higher lows, it may signal an uptrend is coming. Bulls are then looking to see the stock break above the $65 resistance level and consolidate above the level. This could push the stock higher in the future.

Bearish traders are looking to see the stock be unable to form higher lows and start to fall back toward support. A break below support and watching the $48 level turn into resistance is what bears would like to see in the future. This could cause the stock to see stronger bearish pushes in the future.

© 2021 Benzinga does not provide investment advice. All rights reserved.

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