SNAP must hold the line!The bear flag hit our price target perfectly, so perhaps the worst is over.
Historically we've had some serious support at $49, so we should be able to stay above this level.
If we break the support level and then break down from the falling wedge, then we can expect to fall further toward the 200d MA.
If we stay within the falling wedge, we can remain bullish.
1SNAP trade ideas
SNAP -another chance to snap some upSNAP's trendline support is still valid. It bounced off this support on 8 March, swung up from 52 to 65 (forming a mini swing AB) before retracing almost all the way test near the trendline again today. After a scary start to the day (when SNAP was down more than 6%) , buying support came right near the trendline and recovered to form a bullish pin bar. It sure looked like SNAP's "supporters" have been eyeing to stake around this trendline!
Still bullish on SNAP as long as this trendline is not breached. Current stop loss will be 53.90, slightly below trendline.
Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance. Thank you. Feel free to give me your thoughts ! :)
SNAP Wheel Strategy Short PutSnapchat is down 25% from its highs, and while it has bounced up a little bit from the highs, it still remains oversold. Now might be the right time to sell a put into weakness and collect premium.
Trade Idea:
Medium Risk: The 44 Put expiring 4/16 for $1 credit . It has a 81.5% Prob. OTM and if you do get assigned, your cost-basis per share will be $43 and it is a good place to own as you will be in the middle of the volume profile for the last 6 months meaning that you won't be buying at the top but at the same time the bottom.
Aggressive: The 47 Put expiring 4/16 for $1.5 credit . It is right below support and has a higher 75% Prob. OTM. While you have a higher chance of getting assigned with this one, considering the support level that hasn't been breached for months, you still have high odds of collecting the premium and not get assigned. Even if you do get assigned, your cost-basis per share will be $45.5.
For both of these trade ideas, if you believe in Snapchat's fundamentals, which are pretty modest, you can hold on to the stock and sell covered calls (70-80% OTM) and collect premium until you get assigned. Once you do get assigned, you can come back to selling cash-secured puts again.
Long SNAP as NASDAQ recoversStock has declined in lower volume. Great volume on big up days Feb 5 & Feb 24. It shows the sign of just having come down along with all tech.
Mutual fund ownership increased 19% from the previous quarter.
Great EPS an Revenue growth last two quarters.
Long @ 58.79, average of two buys during the day @ 58.43 & 59.16.
Looking at TWTR another strong stock in the same group.