Snap, Inc SNAP made a higher high above the Oct. 7-8 high of $77.41 on Friday, further confirming the stock is trading in an uptrend. Mark Minervini may have named the social media app as his new long position, causing a bullish spike in volume at 11:20 a.m. ET.

Just as the volume began to spike, option activity in Snap calls picked up and during the half-hour that followed seven separate bullish orders were placed, with a strike ranging between $77 and $90 and expiries between Oct. 22 and Nov. 19. Together the orders totaled over $1.13 million.

The Snap Chart: Snap reversed course on Oct. 4 after testing and bouncing from an ascending trendline that has been propping the stock up since May. 13, making a series of higher highs and higher lows on the daily chart. When Snap printed its last higher low on Oct. 11 and Oct. 12 near the $73.59 it also created a bullish double bottom pattern at the level, which helped to boost the stock up higher.

One thing bullish traders should keep on watch is the large lower gap on Snap’s chart between $63.74 and $69.64. Gaps are filled 90% of the time, so it's likely Snap will trade down into the range in the future. Snap is expected to print its third-quarter 2021 earnings after the markets close on Oct. 21, and if the reaction is bearish the gap is within reach.

Snap is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 200-day simple moving average, which indicates overall sentiment is bullish.

• Bulls want to see follow-through in the form of bullish volume push Snap up to close Friday’s trading session above $77.41. Otherwise, bulls should look for a potential higher low on Monday. The stock has resistance above at $80.85 and then there isn’t another hurdle until the Sept. 24 all-time high of $83.34.
• Bears want to see big bearish volume come in and drop Snap down to $73.59 to negate the uptrend. Below the level, the stock has support at the lower ascending trendline and $69.73 before entering gap-fill territory.

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