- 1 Snap stock price fell 18% in after-hours sessions and expected to open with a huge gap down.
- 2 Snap Inc (NYSE: SNAP) beats EPS as well as revenue estimates.
- 3 SNAP share price faced rejection from $14.00 and reverted down.
Snap stock price (NYSE: SNAP) tumbled 18% in after hours trading session despite company beats earning estimates. However, the prices are likely to open gap down near the $10.00 which is likely to act as a strong support.
Snap stock price prediction is bullish till it holds $10.00 support. It suggests a significant increase in the value is possible in coming months if certain conditions are met.
SNAP stock managed to climb above the 50 day EMA shows the short term trend favors the bulls. Recently, buyers succeeded to break the 200 day EMA which turned the positional trend in upward direction.
However, prices failed to give the follow up momentum and got stuck into the narrow range of consolidation.
Snap stock prices performed well in the past few months and recovered from lows by forming higher high swings.
Few days ago, Snap stock broke out of its previous swing high hurdle at $12.80 which created a hope for trend reversal. However, due to quarterly earnings the prices are expected to open gap down which will erode previous gains.
Snap Stock reacted negatively after Earnings
Snap stock price closed the previous session at $12.51 with an intraday decline of -1.34%. Snap Inc released the quarterly earnings on July 25, 2023. It reported an EPS of -0.24 and Revenue of $1.068 Billion.
Company beats the EPS estimate by 2.66% and revenue by 1.32%. Despite that, the stock prices reacted negatively in the after hour session. It shows sellers are highly active on the higher levels.
Till Snap stock holds $10.00 short term bounce back is possible. However, if the price drops below $10.00 then it might raise concern for the long term investors.
Gap down in Snap Stock will erode the 50% of gains
Snap share will erode the 50% of its previous gains after the gap down open. However, it will be interesting to see how prices will react near to the support zones. If the buyers are active then they will try to defend the $10.00 support else more downside will open.
The MACD curve is reversing down and displayed a negative crossover indicates prices might trade with bearish bias. The RSI at 56 near to the neutral territory but it might test the oversold territory after a gap down.
Snap stock price (NYSE: SNAP) tumbled 18% in after hours trading session. The recent breakout has failed and prices reverted down. However, the SNAP share is likely to open near $10.00 which will act as important support for bulls.
- Resistance levels: $14.00 and $16.00
- Support levels: $10.00 and $8.00
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.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.