Snap Inc.Long
SNAP: A Technical Approach to Snapchat 1W (Jun. 05)
X Force Global Analysis:
Snapchat had its IPO at $17, and started trading at $24 a share. In this analysis, we take a technical approach to SNAP, and explore its bullish probabilities.
Analysis
- The first thing we notice is a massive reverse head and shoulders pattern on the weekly chart
- It could be said that we are currently in the middle of forming the right shoulder
- Within the right shoulder, we have another reverse head and shoulders pattern
- The smaller pattern should be interpreted as a bullish continuation pattern, having completed the head
- The Relative Strength Index is closer to overbought levels, and the Moving Average Convergence Divergence (MACD) also shows decreasing momentum
- Another leg down to complete the right shoulder is necessary for the completion of this pattern
- Combining this with Elliott Wave counts, it could be said that we are seeing an Impulse Wave (12345), starting at the bottom of the smaller head
- A break and close above the neckline would confirm a bullish rally
What We Believe
It's important to note that this analysis is a purely technical approach to the stock. Based on certain confirmations of the reverse head and shoulders pattern, we could expect a bullish rally for the long term.
Trade Safe.
Snapchat had its IPO at $17, and started trading at $24 a share. In this analysis, we take a technical approach to SNAP, and explore its bullish probabilities.
Analysis
- The first thing we notice is a massive reverse head and shoulders pattern on the weekly chart
- It could be said that we are currently in the middle of forming the right shoulder
- Within the right shoulder, we have another reverse head and shoulders pattern
- The smaller pattern should be interpreted as a bullish continuation pattern, having completed the head
- The Relative Strength Index is closer to overbought levels, and the Moving Average Convergence Divergence (MACD) also shows decreasing momentum
- Another leg down to complete the right shoulder is necessary for the completion of this pattern
- Combining this with Elliott Wave counts, it could be said that we are seeing an Impulse Wave (12345), starting at the bottom of the smaller head
- A break and close above the neckline would confirm a bullish rally
What We Believe
It's important to note that this analysis is a purely technical approach to the stock. Based on certain confirmations of the reverse head and shoulders pattern, we could expect a bullish rally for the long term.
Trade Safe.
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🌎 Telegram | t.me/xforceglobal
📢 Twitter | twitter.com/XForceGlobal
🎥 YouTube | youtube.com/c/XForceGlobal
📢 Twitter | twitter.com/XForceGlobal
🎥 YouTube | youtube.com/c/XForceGlobal
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