Data platform company Snowflake (SNOW) recovered from premarket weakness and was trading higher Thursday despite light guidance. It is an important "tell" when a stock rallies on what is perceived to be bearish news.
Let's check the charts and indicators.
In this daily bar chart of SNOW, below, we can see that prices made a low in early November and then bounced to the upside. A quiet move lower unfolded in November but a small gap was not filled and prices reversed higher recently. SNOW still trades below the declining 50-day and the declining 200-day moving averages but we could see both of these lines tested in the days ahead if the rebound has "legs".
The daily On-Balance-Volume (OBV) line was steady in November and shows a glimmer of recent improvement. The Moving Average Convergence Divergence (MACD) oscillator is improving and has generated a cover shorts buy signal.
In this weekly Japanese candlestick chart of SNOW, below, we can see that the two most recent candles are a spinning top and a doji. Both candles indicate a balance between bulls and bears. A bullish white candle this week should mark a bottom reversal.
The weekly OBV line has been bearish since November 2021. The MACD oscillator is bearish.
In this daily Point and Figure chart of SNOW, below, we can see an upside price target in the $187 area.
In this weekly Point and Figure chart of SNOW, below, we can see a downside price target in the $91 area.
Bottom line strategy: Shares of SNOW look like they can move higher but I only see potential to the $180 area.
