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Snap stock dropped by 7.93% in the last trading session after a good performance in the previous week. - 2
Snap Inc. (NYSE: SNAP) is taking rejection from 50 EMA.
SNAP stock price faced rejection from the 50 EMA level. However, stock prices kept on falling by forming lower lows. It showcases that the trend is in a downward direction and bears continued dominance on a higher level. SNAP stock price has gone far away from the 200 moving averages. So, the pullback rally looks tough as of now.
Snap Inc. (NYSE: SNAP) stock fell for 3 consecutive months. It will be interesting to see how the prices react near the lower supports in the next few sessions. The technical analysis suggests prices look oversold.
SNAP share (NYSE: SNAP) price is in a correction phase but trading near the crucial support of $8.89. If formed, a bearish candle indicates bears are active and will try their best to take the price down. SNAP price closed the previous session at $9.63 with a massive intraday drop of 7.93%.
If the buyers succeed in defending the $8.00 support, then the possibility of a bounce back will increase. Buyers tried multiple times to break the higher range and expand upward. However, due to the strong selling presence, prices faced rejection. It shows sellers are still active on the higher levels.
Technical Analysis: Will SNAP Stock Price Break Below $8?
SNAP price is trading below the downward-sloping 50-day and 200-day EMA showcasing a downtrend. However, the SNAP price has gone far away from the EMAs. Nevertheless, if selling volume adds up, then the price may break below the lower support levels. This would create a downtrend with lower highs and lows.
The current value of RSI is 41 points. The 14 SMA is above the median line at 39 points which indicates that the SNAP stock is bearish. The MACD generated a positive crossover and the histogram is also green indicating mild bullishness.
Summary
Snap Inc. (NYSE: SNAP) is oversold as per oscillators. Investors are not very optimistic regarding recovery. The short sellers may find this opportunity beneficial whereas buyers may prefer to wait on the sidelines regarding the current scenario. The price at present requires substantial support from the buyers in order to make a recovery as it is facing major resistance from the previous resistance points and multiple moving average levels.
- Support Levels: S1 $8.89, and S2 $8.00.
- Resistance Levels: R1 $11.56, and R2 $10.56.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading crypto or stock. Please do your own research before making any financial decisions.
Source: https://www.thecoinrepublic.com/2023/09/07/snap-stock-price-down-7-will-snap-inc-break-below-8-level/