Snap, Inc (NYSE:SNAP) and Pinterest, Inc (NYSE:PINS) were trading 8% higher at one point on Wednesday, as the general markets rebounded from a steep 4-day downturn during which the S&P 500 declined over 5%.

The social media stocks have been heavily beaten down over the past months, with Snap declining almost 60% from its Sept. 24, 2021 all-time high of $83.34 and Pinterest plummeting about 72% from its all-time high of $89.90 printed on Feb. 16 of that same year.

Both stocks have started to show signs the bottom may be in, although Pinterest may offer traders and investors less risk because it has confirmed a breakout from a pattern, while Snap is still in the pre-breakout stage.

It should be noted, however, that events affecting the general markets, negative or positive reactions to earnings prints and news headlines can quickly invalidate patterns and breakouts. As the saying goes, "the trend is your friend until it isn't" and any trader in a position should have a clear stop set in place and manage their risk versus reward.

See Also: Here's How Benchmark Views Twitter, Pinterest, Snap

The Snap Chart: On March 7 and March 8, Snap tested the bottom descending trendline of a falling channel pattern that the stock has been trading in since Oct. 22. On Wednesday, Snap reacted bullishly to the trendline and shot up towards the channel’s median line.

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The Pinterest Chart: Pinterest broke up from a falling channel pattern on Feb. 24 and spiked up 7.93% over the two trading days that followed. Between March 1 and March 8, the stock fell down to test the upper descending trendline of the pattern as support and held above that level, which confirmed the pattern was recognized.