SNAP went down some 7% on Thursday on little news, and with some attributing this fall to a single tweet.
This market capitalisation loss of $1.5bn looks more like profit-taking after the recent stellar performance.
The stock held the support line of post-earnings breakout at $17, and continues to fall but in low volume.
In the absence of further negative news, and in the context of a strong market, the shares should recover.
Buy the shares here with a target of $21 at the previous high (post earnings) and a stop-loss at $16.50 (below the support line).
Reward to risk = 3.25 x if purchased at $17.55. Trade in half size.
This market capitalisation loss of $1.5bn looks more like profit-taking after the recent stellar performance.
The stock held the support line of post-earnings breakout at $17, and continues to fall but in low volume.
In the absence of further negative news, and in the context of a strong market, the shares should recover.
Buy the shares here with a target of $21 at the previous high (post earnings) and a stop-loss at $16.50 (below the support line).
Reward to risk = 3.25 x if purchased at $17.55. Trade in half size.
