In our April 25 review of the charts of SNOW we wrote that "Fundamental analysts will recommend buying a stock based on valuation but a technical analyst will want to see a valid uptrend. I would continue to avoid the long side of SNOW until a valid uptrend can be seen." We included a daily Point and Figure chart with a $162 price target and a weekly chart with a $110 price target.
With prices around $116 in early Thursday trading action let's check the charts again.
In the daily bar chart of SNOW, below, we have to imagine a gap lower opening. Prices have been in a downward slide since November. The slope of the 50-day moving average line is negative and the 200-day line is weak.
The On-Balance-Volume (OBV) has been weakening since November and tells us that sellers of SNOW have been more aggressive than buyers with heavier trading volume on days when prices have closed lower.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line.