Snap Tried to Rally But it Didn’t Last LongSnap has been rallying as lawmakers move against TikTok, but traders may be selling the news.
Today we’ll consider the daily chart of the social-media company, which has struggled since growth names hit the wall over a year ago.
The first pattern is the jump above $12.50 on Tuesday, fueled by the news from Capitol Hill. SNAP failed to hold those gains, resulting in false breakout above the February high.
Next is the 200-day simple moving average (SMA). Prices remained below this long-term trend indicator during the entire decline that began in October 2021. This week’s rally was its first test of the 200-day SMA, which may trigger some alerts for trend followers.
Third, the stock gapped lower following its last two quarterly reports.
Finally, stochastics may be peaking near overbought territory.
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