SNAP stock: Will Snap Stock Price Expand Upside and Reach $16?

SNAP stock price is up by 10.44% on a monthly basis.
SNAP Inc. stock (NYSE: SNAP) is trading below the 200-day EMA showcasing a downtrend.
SNAP share price defended $10.00 showing decent recovery at the lower levels.

Snap stock price gained approximately 10.44% on a monthly basis and formed a double bottom pattern inside a wide consolidation range. SNAP stock price (NYSE: SNAP) held onto prices above the 50 day EMA implying that a short term trend is in the favor of the bulls. However, the 200 day EMA is sloping downwards indicating that the positional trend is still in the downward direction.

Snap stock price recovered around 14% from the recent swing low and is approaching a higher consolidation range. SNAP Inc. stock (NYSE: SNAP) price closed the previous session at $11.21 with an intraday rise of 2.75% and market capitalization stood at $17.73 billion. Early March, SNAP stock price witnessed a massive spike in the buying volume and prices rose upward with high momentum. Essentially, serious buyers are accumulating the stock at the lower levels.

Later, Snap stock price surged around 9% in a single day and attempted to break out of the higher range. However, the attempt failed and the price pattern ended up forming a shooting-star bearish candle. Slowly and steadily, prices began to decline by forming lower-lows and lost all previous gains.

Will SNAP Stock Price Test the 200 day EMA?

Snap stock price took support near $10.00 and again pushed higher toward the equilibrium level. Essentially, Snap share price lacked direction and it needs to break either side of the range for a new price. Presently, Snap stock sustains above the 50 day EMA, so the possibility of continuing to rise upward remains high. However, Snap stock price will gain momentum when it breaks out of the $12.66 hurdle level.

Technical analysis suggests that SNAP stock is mildly bullish and if it expands above the higher range, then, it might test the 200 day EMA. On the other hand, if the price remains range bound, the formation of a long term base can be expected.

SNAP stock price: Technical Indicators

Snap stock price defended the previous week low at $10.47 and formed a hammer candle on the weekly timeframe but failed to give follow up momentum. MACD generated a negative crossover but the curve is sloping sideways indicating that prices are likely to consolidate for some more time. The RSI at 53 sloping upward denotes prices are in neutral territory.

Conclusion

Snap stock price gained around 10.44% on a monthly basis and managed to climb above the 50 day EMA showing that the buyers are active near the demand zone. However, Snap stock (NYSE: SNAP) is still inside the wide consolidation range. Technical analysis suggests Snap share price is mildly bullish but does not show any strong signs of range expansion.

Technical levels

Resistance levels : $12.66 and $16.58

Support levels : $9.71 and $8.08

Disclaimer

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