We’re going to focus on a chart called Snowflake (NYSE: SNOW).
We can see that the stock had been in a nice consolidation pattern after coming down sharply – let’s call it from about 170 all the way down to 125 – and really caught a nice double bottom there at about 125. We can see it bounced around and hit that double bottom. Now the stock is in a nice uptrend of higher highs and higher lows.
It’s having a strong day on pretty good volume, but MACD didn’t quite cross over. It looked like it was about ready to cross over for a bearish sell signal, but it didn’t quite do that.
We also see that the stochastic’s momentum at the bottom is starting to turn upwards and if we get a follow-through day tomorrow we’re likely to see this parabolic SAR turn back to a bullish reading.
So good quality chart. I don’t know if there’s a whole lot of upside here, maybe up to 200. I’d say perhaps buying some March or April 170 or maybe even 175 calls would probably do the trick here, but you will need to be patient with this one and willing to ride out some of that volatility.
