Could Snowflake Be Ready To See A Reversal?

Snowflake Inc. SNOW shares traded higher Friday after retail traders pushed it higher. Several technology stocks were also trading higher as markets recovered from yesterday’s sell-off over concerns that economic recovery is slowing as the COVID-19 Delta variant spreads.

Snowflake Inc. was up 7.45% at $268.94 at last check Friday afternoon.

Snowflake Inc. Daily Chart Analysis

• Shares look to be forming into what technical traders call an inverse head and shoulders pattern.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Snowflake Inc. Levels To Watch

• The stock has formed into what looks like an inverse head and shoulders pattern.
• This pattern happens when a stock starts to make higher lows and forms a base near a previous low. The bullish reversal pattern may see a large move if confirmed.
• The Relative Strength Index (RSI) has been moving upward and sits at 70 knocking on the door of becoming overbought. This may hint that the stock could be ready to break out if the RSI can keep climbing.

What’s Next For Snowflake Inc?

Bulls would like to see the stock breakout and see a large move. Bulls would also like to see the stock continue to trade above the moving averages keeping bulls in control of the stock.

Bearish traders would like to see the stock not confirm the inverse head and shoulders pattern and start falling lower. Bears want to see the stock cross below the moving averages for a potential trend change.