Let's look at the charts to see how this trade is going.
In the daily bar chart of SNAP, below, we can see that the shares have continued higher since June 16. There is a brief pullback in early July but it never gets close to our stop point. Prices are trading around the rising 50-day moving average line and above the positively sloped 200-day line. The
On-Balance-Volume (OBV) line has been steady to rising the past year. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and could soon turn upwards again.
In the weekly Japanese candlestick chart of SNAP, below, we can see that prices have rallied strongly once they broke out of the base pattern in the $15-$10 area. The shares are trading above the rising 40-week moving average line.
The weekly OBV line is bullish and supports the price gains we have seen while the MACD oscillator is bullish.
In this daily Point and Figure chart of SNAP, below, we can see a potential price target in the $108 area.
In this weekly Point and Figure chart of SNAP, below, we used close-only price data and a five-box reversal filter. Here the software suggests we could see a rally to the $283 area.
Bottom-line strategy: Traders who are long could raise stops to $67 from below $55. The $108 area is our first upside price target -- $283 may be seen longer-term.
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