$SNAP gap down after earnings playI think we all saw the news:
Snap reported upbeat earnings for its third quarter, while sales missed expectations.
The company also issued Q4 sales guidance below estimates. This was related to how Apple's data privacy changes make it harder for digital advertising to perform as they have been. we saw Google and FB have dips as well.
Since the $SNAP drop is so extreme there is opportunities to play on the Long and Short side at key levels. I'll be looking to scale into a trade on either side at the support and resistance levels outlined int he chart.
Long : If prices recovery quickly on Monday, I expect a sell off for the rest of the week as investors get a second chance of exiting the trade before anymore bad news.
Short : If we sell off even more on Monday, then I will be buy-buy-buying at each support level marked. I think $SNAP has potential to be a great day and swing trade this week.
Have a great Monday!
