SNAP: How to proceed in this post-earnings?
Hello traders and investors! Thanks to the earnings report, SNAP is flying today. But how to proceed when this happens? Is it time to buy, to sell, to go short, or just do nothing? The charts will give us an answer.
If you are in SNAP, I always advise to book at least half of your profits in a day like today, just in case, and then set a technical stop-gain. On SNAP, the technical stop-gain is below the $ 73.59, as this point was the previous All-Time High, and it is supposed to work as a support in the future.
In the next week I would just set a trailing stop-gain under the previous day’s low. If SNAP keeps going up, that’s great. If it drops, then ok, time to exit.
Is there any chance that it’ll fill this gap? Yes, but I find this unlikely, at least for now. This is a Breakaway Gap enhanced by the earnings report, and SNAP did a breakout from the ATH by doing this gap (I like to call this Monster Gap). The last time this happened on SNAP the momentum was so strong that it prevented even a pullback. Let’s remind SNAP on October 2020:
What could happen on SNAP right now, if it can’t keep pushing up, is a sideways correction, until the 21 ema catches up with the price again in a few weeks, to offer us a new support level on SNAP.
If I were out and wanted to buy SNAP, I wouldn’t count on a pullback, but I would wait for it to cool down a little bit more, and for the Risk/Reward ratio to make sense again. If I buy right now, it would feel like I would be buying from someone who bought at the last dip, and will use me to book profits.
Eventually, the 21 ema will get closer to the price, and we’ll see a good opportunity then. For now, as someone who’s out, I’ll just stay out. There are many more interesting stocks around.
Remember to follow me to keep in touch with my daily studies, and if you liked this idea, please, support it!
Have a good weekend!
If you are in SNAP, I always advise to book at least half of your profits in a day like today, just in case, and then set a technical stop-gain. On SNAP, the technical stop-gain is below the $ 73.59, as this point was the previous All-Time High, and it is supposed to work as a support in the future.
In the next week I would just set a trailing stop-gain under the previous day’s low. If SNAP keeps going up, that’s great. If it drops, then ok, time to exit.
Is there any chance that it’ll fill this gap? Yes, but I find this unlikely, at least for now. This is a Breakaway Gap enhanced by the earnings report, and SNAP did a breakout from the ATH by doing this gap (I like to call this Monster Gap). The last time this happened on SNAP the momentum was so strong that it prevented even a pullback. Let’s remind SNAP on October 2020:
What could happen on SNAP right now, if it can’t keep pushing up, is a sideways correction, until the 21 ema catches up with the price again in a few weeks, to offer us a new support level on SNAP.
If I were out and wanted to buy SNAP, I wouldn’t count on a pullback, but I would wait for it to cool down a little bit more, and for the Risk/Reward ratio to make sense again. If I buy right now, it would feel like I would be buying from someone who bought at the last dip, and will use me to book profits.
Eventually, the 21 ema will get closer to the price, and we’ll see a good opportunity then. For now, as someone who’s out, I’ll just stay out. There are many more interesting stocks around.
Remember to follow me to keep in touch with my daily studies, and if you liked this idea, please, support it!
Have a good weekend!
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