SNOW was one of a very good acting stocks from the low of November 23, at around $145, it increased to $236 on Feb 28, 24. A nearly 60% run.Its key moving averages (MA50/150/200) had been acting very well.
On Feb 29, 24,
SNOW broke down hard violating its MA-50 on huge volume, after earnings.The big gap down of -18% made it looks like a bargain. However, in the stock market, cheap is not equivalent to a good buy.
Even if we bought it on the low of that day, at the time of this writing (March 24) the stock went down another 12%.
- Never bottom fishing.
- Focus on the strongest stocks.
- Trade only the stocks which are above its rising MA-50/150/200
- Scale down before earnings is a good idea.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.