Snap Stock Price on the Verge of Bullish Breakout, What’s Next?

• SNAP stock price is approaching a resistance trend to overcome selling pressure.
• In the November 10 letter, buyers successfully closed the daily price candle above the 50 DMA.
• NYSE: Snap’s price rose 12.24% on Thursday and closed at $10.73.

US-based camera and social media company Snap Inc. has done well in the last few days. However, the price of the digital asset fell by about 28% following its third quarter earnings report. Later on this release, the NYSE:SNAP stock price opened a gap-down in the pre-market session, although the next day on October 21, buyers referred to the price and the daily price candle as the long-engulfed Doji candle.

This sharp climb was driven by a sharp rise in global indices as the Dow Jones gained +1201 points (up 3.7%), the S&P 500 5.54% as well as the Nasdaq up 7.35% in its November 10 letter.

Between pump and dump, the Snap stock price has been underperforming since its all-time high. Additionally, bears dominate the digital asset under falling parallel channels on each time frame, daily and weekly. For the time being, the price is approaching a resistance trend to overcome selling pressure. But trading volume often decreases between high-low formations.

As per the Q3 results, yearly revenue increased 5.71% along with $1.13 Billion. This healthy news led the market and buyers successfully reversed the trend. As a result, they recovered all losses in a matter of three weeks. Now, asset price stays as breakeven point, above the current price region, SNAP stock price may propel until the previous swing high of $12.8.

Perhaps Snap stock price will start trading above its bearish pattern at the end of this week. Because, it sustains above 20 and 50 day moving average and 50 DMA flipped into immediate support. Now the 200 DMA is left to be hit by buyers with massive trading volume. Notably, On Thursday NYSE: SNAP price spiked 12.24% and closed at $10.73 mark. 

On the daily price scale, RSI rises above the semi-line, suggesting breakout by the end of this week. 

Conclusion 

The NYSE: SNAP stock price trading just below the resistance trendline of descending parallel channel. Now 100 DMA as well as the previous swing high of $12.8 is observed as the next resistance level. 

Support level – $9.0 and $7.0

Resistance level – $10 and $13

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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