Chart of the Week: SNOW
We’re gonna be profiling Snowflake, symbol SNOW.
Let’s look at this on the weekly chart, and then we’ll take a look at it on the daily chart.
Taking a look at the TrendSpider version of the weekly chart, you can see that the stock has made a great move this week on some good volume. We’ve got two more days left in the week, and we think we’re gonna exceed volume from the past couple of weeks. We did see some good volume two weeks ago.
Price action has been extremely positive, so much so that the parabolic SAR, the stop-and-reverse indicator, which tells us changes in trend in the price, has turned positive on the weekly chart. That’s an important indicator to turn on the weekly chart, because it takes so long for that to get moved around. We did have a good collection of nine weeks in a row where it was bearish but the stock was going sideways to slightly higher.
We have a bull signal on the MACD. It crossed over a couple of weeks ago.
And look at the higher highs and higher lows on the relative strength index. That’s what’s really impressive to me.
And then the trader’s dynamic – it looks at relative strength versus the Bollinger bands and comes up with a signal. The crossover signal is when these two curly type lines cross above the flatter line, which is the longer moving average, and we got a buy signal on the crossover.
Let’s take a look at the daily chart. It shows an impressive move over the past several days. We moved up last week and followed through and confirmed right here on Friday for a confirmed buy signal. We continued to go higher on Monday, Tuesday, and Wednesday.
This might have you worried that the stock is overbought and your concerns would be valid. We had an overbought reading on relative strength back in February before the stock tumbled. We have same exact signal right now.
What I would suggest if you’re looking at this name is wait for a little bit of a pullback here. It is coming into resistance between 173 to 177, which is the highs from back in February. If we get a little bit of a pullback here and go sideways a bit, maybe even a deeper pullback to 162, this is pretty volatile name, we get a pullback to 175, and the stock can really take off to the upside.
Take a look at Snowflake here when you get a chance – that’s SNOW.
Don’t miss a single one of Bob’s charts! Get the Chart of the Week in your inbox every week!