Is Snap's Stock Beginning To Reverse?

Snap Inc. SNAP shares were attempting a bounce back Wednesday after seeing a few down days in a row.

The stock has been trading lower recently alongside other social media stocks due to the Russia-Ukraine escalation causing overall market weakness.

Snap was trading down slightly at $36.85 Wednesday afternoon.

See Also: How to Buy Snapchat Stock

Snap Daily Chart Analysis

• Shares look to be cooling off after seeing a strong couple of weeks in early February. Snap recently fell below support in a sideways channel. The $48 level was holding as an area of support with the $65 level as an area of resistance in the channel. Now the $48 level may begin to hold as an area of resistance.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish. Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been moving sideways the last couple of weeks and sits at 49 on the indicator. This shows there are just about equal amounts of buying and selling pressure in the stock. If the RSI were to make a large move in the next few days, it could help dictate the direction in which the stock is going to move.

What’s Next For Snap?

Snap is looking as though the bearish trend could be ending. The stock saw a large gap up a couple of weeks ago and has been pushing higher since. The last week saw a bit of downward consolidation as the stock gives back some of the gains it saw.

Bullish traders are looking to see the stock form higher lows and head back toward the $48 level again. Bulls are then looking for a cross above the level and for it to hold, also looking to see a cross above the moving averages for bullish sentiment to enter the stock.

Bearish traders are looking to see the stock hold below the moving averages and form lower highs and continue the long-term downward trend.