14Mar10:38 amEST

Calmer Seas Ahead for Snap

Shares of SNAP rallied hard at the open after longtime BTIG bear Richard Greenfield upgraded the stock to buy from neutral due to expectations of rising advertising revenue.

Seeing SNAP, a name which I have been long with Members for a few days now, pop at the open, combined with a mixed broad market open, was one of those spots where I simply had to exercise discipline and lock in partial profits. 

However, with the other piece of my swing long I expect big things, as the stock is clearly putting its numerous shorts in a tough spot as it gaps up and away from its 200-day moving average. 

Furthermore, the stock had been basing rather constructively for roughly the last month or so at that 200-day, with bears proving inept at rejecting price lower, like they had done successfully so many times since SNAP's latest downtrend commenced in early-2018. 

This time around, however, SNAP is exhibiting more tangible evidence of turning the corner in favor of bulls. And the Facebook/Instagram major technical issues seen throughout the day yesterday may very well be a sign that SNAP is now a more legitimate contender among the social apps and their respective standing among the market. 

So while the likes of ROKU have been impressive in recent months, and no one is saying SNAP will overtake FB's market cap anytime soon, SNAP is acting the best it has in well over a year. Back then, in early-2018, the stock completely relinquished a sizable earnings gap higher and sank into the abyss. If bulls can avoid anything close to that fate this time around, the calmer seas ahead await a stock with plenty of skeptics, be it active shorts of reticent potential longs. 

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