Snap may benefit from the TikTok ban. Trading idea 14/03/2024The US House of Representatives has passed a bill to ban TikTok in the US due to concerns over the platform's ties to China. The Senate will next consider the matter. According to analysts at CFRA Research, Snap Inc. stands to be the primary beneficiary of a TikTok ban. The app's audience overlaps that of TikTok, which could allow the issuer to increase its active users and likely lead to higher ad sales volumes and company revenue.
Let's turn our attention to the stock chart of Snap Inc. (SNAP).
On the daily (D1) timeframe, a support level has been established at 11.11, with resistance forming at 12.65. As the quotes have rebounded from the lows of late February this year, we are witnessing the start of an upward trend.
On the hourly (H1) timeframe, long positions might be attractive upon breaking through the 12.65 level, targeting a short-term goal of 15.18. Maintaining a long position up to 17.92 could be considered in the medium term.
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