Anthony Speciale Stock Market Analyst

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Snap Inc. Stock Takes a Nosedive

Snap Inc. broke its uptrend back in October of 2021, but it just recently took a steep nosedive right into an area of long-term support.

Editor’s Note: All major U.S. stock markets are closed today, May 30, in observance of Memorial Day.

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Snap Inc. (SNAP) broke its uptrend back in October of 2021, but it just recently took a steep nosedive right into an area I’ve identified as long-term support.

That’s not a suggestion to buy it, however. It’s merely some insight into my thought process moving forward from here.

We still have to see what transpires next.

I’ve illustrated three color-coded channel structures, which basically tell the entire story of the history of SNAP. You’ll clearly see resistance and support throughout.

Once you’re able to create these structures, it makes life much easier to implement a trade plan built around them.

Without the proper analysis, your trade plan lacks the structure needed to make it all work together in harmony.

Let’s take a look at the chart…

Weekly Chart of Snap Inc. (SNAP) — Source: TradingView

In the chart above, you can see all four phases of the stock cycle at work…

  • Stage 1: Accumulation
  • Stage 2: Mark-Up
  • Stage 3: Distribution
  • Stage 4: Capitulation

I think you can easily identify which stage we’re currently in…

Clearly, we are currently experiencing the capitulation stage as the price collapses. No one wants to touch this stock at the moment.

Support in Sight?

If you take a look at the teal lower channel structure that price just tested, it has in the past served as an excellent support structure.

Once again, I’m not saying to buy here. But if this area holds and contains selling, perhaps the cycle can begin again in and around this area.

Maybe we enter a new phase of accumulation and institutions begin buying this stock again?

Of course, the stock could also keep tanking and become a penny stock…

We don’t know yet.

Ideally, we want to buy during the mark-up stage towards fresh resistance, and we want to sell during the distribution stage near the highs.

But how convenient was it that, during a significant selling day, support was found exactly at a structure that was formed back in 2019?

History tells us a story if we’re willing to see it.

Take the Next Step

If you’d like to learn more about my approach to technical analysis, I highly encourage you to check out my premium trading service, The Speciale Report, which focuses exclusively on the crude oil markets.

We trade it in the futures, ETF and options markets, all of which give members the opportunity to trade at their comfort level.

That’s the beauty of The Speciale Report’s trade ideas… We accommodate all styles of traders. There’s really something for everyone.

And right now, you can become a member today for just $0.99

If you’d like to learn more about the opportunities the energy sector offers, please feel free to check out The Speciale Report by clicking here!

Rules to Live By

“You never change your life until you step out of your comfort zone; change begins at the end of your comfort zone.” Roy T. Bennett

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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