Snap Stock Price rises 8%, Will SNAP break the $13 hurdle?

• Snap Stock Price (NYSE: SNAP) rises 8% in a single day. 
• The Inc Stock holds the 50 day EMA and attempts to break the 200 day EMA.
• The Share Price gained 16% in the previous month and buyers succeeded to give the follow up.

Snap Stock Price (NYSE: SNAP) rises 8% in a single day and attempts to break out of the $13.00 hurdle. Well, the breakout is still awaited but prices formed a strong bullish candle which grabbed the attention of traders. 

Snap Inc Stock has been consolidating in a wide range for quite a long time. Buyers tried multiple times to break out of the higher range and expand upward but got rejected. It shows the seller’s presence on the higher levels. 

In the beginning of May, stock took support near $8.00 and showed minor bounce. Later, the recovery continued and prices succeeded to climb above the 50 day EMA which triggered the positive sentiment. 

The short term trend has reversed in the favor of bulls and prices continue to rise upward by forming higher highs. Presently, the Stock is trying to climb above the 200 day EMA hurdle. If buyers succeed then the positional trend will reverse in upward direction. 

Snap Stock Price closed the previous session at $12.74 with an intraday rise of 8.15%. The market capitalization stands at $20.50 Billion. 

Will Snap Stock expand the range upward?

Snap Stock Price showed a surprising recovery from the low and up by 43% on YTD basis. The recent attempt looks powerful and buyers seem to be returning back to the track. 

Till Stock Price is sustaining above the $10.00 the probability of upward range expansion remains high. However, if the price faces minor rejection then the downfall is likely to get absorbed by the buyers. 

The Stock seems to be preparing for the next phase of the rally which will pick up momentum after the range breakout. If buyers succeed to break the $13.00 hurdle then 25% approx upside is possible. 

The technical analysis suggests, the Stock Price is in the initial phase of trend reversal and probability of breakout is high.

SNAP Stock displayed a V-shape recovery

The Stock Price rising for 9 consecutive weeks indicates the strength of bulls. It displayed a V-shape recovery which further boosted the confidence of investors. 

The broader market index Dow Jones and Nasdaq Composite is performing well which is positively impacting the sentiment of investors. 

The MACD curve is rising upward and sustaining above the zero line indicates bullish momentum might continue. The RSI at 75 near to the overbought territory indicates short term retracement is possible. 

Conclusion

Snap Stock Price (NYSE: SNAP) is near to the higher range of consolidation. It rose 8% on a single day and created a positive hope for the long term investors. The technical analysis suggests, The trend is reversing upward and probability of $13.00 breakout is high. 

Technical levels

Resistance levels: $13.00 and $16.53

Support levels: $10.00 and $9.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.