SNAP closes higher for the 2nd day in a row
Snap Inc. Class A (SNAP) Technical Analysis Report for Oct 28, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SNAP finished Wednesday at 42.88 gaining $1.34 (3.23%), strongly outperforming the S&P 500 (-3.53%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 42.34, the stock confirmed its breakout through the previous session high after trading up to $1.06 above it intraday.
Daily Candlestick Chart (SNAP as at Oct 28, 2020):
Wednesday's trading range has been $3.27 (8.11%), that's far above the last trading month's daily average range of $1.50. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SNAP.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on October 23rd, SNAP actually lost -4.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 44.18 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Snap. Out of 24 times, SNAP closed higher 62.50% 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 10 trading days, showing a win rate of 62.50% with an average market move of 1.28%.