$SNOW is a go! – January 23, 2024
This is Scott with your Chart of the Day. I want to take a look at Snowflake ( NYSE: SNOW ), I think Snowflake ( NYSE: SNOW ) is ready to go here.
If I zoom out on the chart, we can see a very long choppy base of consolidation. It looks like Snowflake ( NYSE: SNOW ) is trying to break above and did it here today. If I bring out my handy dandy drawing tool, you can see that long choppy base, where clearly that $200.00 level is a big area of resistance.
The last couple of months, it kind of gave a little inclination that it was tightening up after this big puke throughout 2022 as we have some progressively higher lows. It’s not perfect but you get the idea.
You don’t have to be perfect in the market, you can look at ranges because I feel like with technical analysis being so prevalent nowadays, it is really more of a generalization, as opposed to being super duper precise. And so we can see this long drawn out choppy base of consolidation with some higher lows printing here and there but that clear $200.00 level resistance.
Today we got a breakout of that $200.00 level and we did it on higher-than-average volume. You can see the volume down here on that move higher. And so I definitely think Snow ( NYSE: SNOW ) is a go. But I will caution you that it is a bit extended.
Typically, if I am buying a stock, I like to try and buy a breakout close to these moving averages and Snowflake ( NYSE: SNOW ) is a bit extended above. So at this point, I think what you want to look for is a potential pullback to that 8-day exponential period moving average.
Let that moving average catch up to price a little bit, and then use that as a stop-loss level on what Dan Fitzpatrick calls a phase 1 breakout and then you buy the phase 2 pullback into support on a Green Day bounce. And so that is what I would look for here on Snowflake ( NYSE: SNOW ) If you missed the trade today.
If you didn’t, this could definitely go higher. In that case, I would want to know where my stop-loss level is. And I think that the 196.00 level is pretty key here. You can see that zone of consolidation, it couldn’t get above 200.00, couldn’t get above 200.00. It dipped near the 50-day, redounded really quickly, and now we are breaking out here.
I would definitely keep Snowflake ( NYSE: SNOW ) on your watch list. Even if you didn’t get it today, I think it could offer some nice pullback buy opportunities. That’s what I am looking at here with Snowflake ( NYSE: SNOW ).
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