In our June 15 update on shares of cloud computing firm Snowflake (SNOW) we wrote that "All things considered, the charts of SNOW are mixed so a story could be crafted to be bearish or bullish. For now I am still leaning to the bullish side of the ledger. Traders who went long on or around June 9 should continue to hold unless they have been stopped out. Traders with no position could probe the long side risking to $105."
Today we learned that a major sell-side firm raised their fundamental rating on the company to "buy" from "hold" with a price target of $165. Interesting. Let's check the charts once again.
In this daily bar chart of SNOW, below, we can see that the shares have improved in recent sessions. Prices are testing the highs of early June and edging closer to the underside of the still declining 50-day moving average line.
The On-Balance-Volume (OBV) line is showing us some recent improvement as buyers are becoming more aggressive. The 12-day price momentum study shows improvement from March as the pace of the decline has slowed. Foreshadowing a recovery rally?
