SNAP finds buyers at key support level
Snap Inc. Class A (SNAP) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
SNAP ended the week 3.07% higher at 27.83 after losing $0.23 (-0.82%) today, underperforming the S&P 500 (0.01%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SNAP as at Oct 16, 2020):
Friday's trading range has been $1.04 (3.65%), that's above the last trading month's daily average range of $0.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SNAP.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 27.52 earlier during the day, the market bounced off the key technical support level at 27.67 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Wednesday, SNAP gained 2.71% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Snap. Out of 114 times, SNAP closed higher 57.02% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after eight trading days, showing a win rate of 53.51% with an average market move of 0.62%.