Snap Vs. Twitter: A Technical Comparison Ahead Of Earnings

Twitter Inc. TWTR and Snap Inc. SNAP are two technology stocks moving down Thursday. Both companies report earnings after the bell today.

Below is a technical analysis.

Twitter Daily Chart Analysis

• Twitter shares look to be forming into what technical traders call a pennant pattern.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue). This indicates sentiment in the stock is likely bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Twitter Levels To Watch

• The stock trades within the pennant pattern and is nearing resistance in the pattern.
• A break above this pattern resistance could mean that the stock is breaking out and possibly seeing a large bullish move.
• The Relative Strength Index (RSI) sits at 58 and has been rising throughout the past week. If the stock reaches the overbought area on the chart as it breaks out of the pattern, it could add to the bullish run that potentially comes after.

Snap Daily Chart Analysis

• Snap has been in an overall uptrend throughout the year, but more recently trades in a sideways channel.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue). This indicates sentiment in the stock is likely bullish.
• The stock may find support near each of these moving averages in the future.

Key Snap Levels To Watch

• Snap has been uptrending and has found support near the trendline throughout the year.
• More recently the stock has traded in a sideways channel and has found support near the $48 level and struggled to cross above the $65 forming resistance.
• The Relative Strength Index (RSI) sits at 47 showing that there has been a relatively equal amount of buyers and sellers in the stock. The RSI has stayed near the middle on the stock throughout the past few months.

Twitter VS. Snap

Both stocks are looking bullish heading into earnings and neither looks to be any more bullish than the other.

Bulls trading Twitter are looking for a breakout of the pennant pattern and a push higher. Bulls trading Snap would like to see the stock continue to trade above the trendline to stay bullish.