Snapchat

Oh Snap!

Double Screen today

• Shares of SNAP or Snapchat and their tendency to fill gaps whether 100% or partially has ben a working strategy that rewards both bull and bear
• The long view and the short view

The Long View

At first glance, it appears that Snap had trouble right out of the gate.  This has been a losing proposition since day one, and the downtrend is very clear, and the only surprise was the earnings gap from February of this year that probably shocked a lot of bears.

It would have been so clear to get short this name right after that volume spike and reaction to only follow the logic of buying dips and selling rips.  There has really not been much mercy for this name in the long run.  To make things worse, we are comparing the earnings reaction in Febuary of this year to the most recent advance on May 17th 2018

The Short View

This is what happened since May 2nd, SNAP was unbalanced and punished unfairly for the news that was released only to find that it spent that brief period of time inbetween 10.50 and 11 before a massive breakout to 14.10; the uptrend is still working but it is showing some warning signs of having trouble lifting itself above 14.15 for the moment. 

The danger of topping tails

$14.50 would be like trying to bust through a steel door for this stock.  We aren't convinced that the trend has completely run out of gas yet, but the most recent 4 days aren't encouraging.  Price is right now in the cross hairs of the sell-off's point of origin between 5/1 and 5/2

Hitting a barrier and "Selling the Rip"

After all the stock ran up 35.08% already and this "exhaustion" should have the collective thinking maybe its time to revisit the May lows (and reevaluate the information) or see if we can mean revert and retouch the moving average at $13.00 again.