Snap Entering A Short Downtrend
SNAP has had a great few days. SNAP has gone up 13% since my initial prediction. However, today we are beginning to see what may indicate a reversal. The 21 Weighted Moving Average crossed under the 50 Weighted Moving Average, a very good sign of a downtrend. The Weighted Moving Averages are widening their gap, a sign that the downtrend is about to begin.
This start of a downtrend was further warranted by a sudden drop in the RSI value. The RSI indicator should not be used on its own to indicate down trends, however the overall indicator definitely shows a shift to oversold levels.
Finally, we can see the VWAP price (in white) higher than the stock value. Although this is also an indicator of buying, given this context it seems to be a sign that SNAP is dropping.
Odds are that this trend will create new lines of resistance and support, higher than previous lines. However, for the next coming days a downtrend seems likely.
The indicators are at the same settings as the previous two ideas on SNAP. Please check them out.
Please let me know if you have any feedback or if there is anything I missed out. I appreciate the feedback.
This start of a downtrend was further warranted by a sudden drop in the RSI value. The RSI indicator should not be used on its own to indicate down trends, however the overall indicator definitely shows a shift to oversold levels.
Finally, we can see the VWAP price (in white) higher than the stock value. Although this is also an indicator of buying, given this context it seems to be a sign that SNAP is dropping.
Odds are that this trend will create new lines of resistance and support, higher than previous lines. However, for the next coming days a downtrend seems likely.
The indicators are at the same settings as the previous two ideas on SNAP. Please check them out.
Please let me know if you have any feedback or if there is anything I missed out. I appreciate the feedback.
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