Latest News

Buy the Dip in Snowflake Stock? Here’s the Must-Hold Support Level.

With all eyes on tech stocks this morning because of Nvidia  (NVDA) – Get Free Report, Snowflake is not one that is making investors very happy.

Shares of Nvidia are exploding to all-time highs on better-than-expected earnings.  Snowflake is falling despite Wall-Street-beating quarterly results.

Although the cloud-services provider beat on earnings and revenue estimates, its guidance disappointed investors — and they didn’t waste any time letting the company know.

The stock was down about 16% at last check and was off 19% at the low.

Don’t Miss: Apple Stock Has Two Buy-the-Dip Spots (and One Is Really Attractive)

Snowflake commanded a lot of attention during its September 2020 initial public offering, with the valuation swelling. Warren Buffett’s Berkshire Hathaway  (BRK.A) – Get Free Report  (BRK.B) – Get Free Report and Salesforce  (CRM) – Get Free Report both took stakes, too.

The valuation ultimately shot up toward $130 billion. Now, though, the stock has come under considerable pressure despite the company’s high growth rate.

Is there a buying opportunity here?

Trading Snowflake Stock on Earnings

Daily chart of Snowflake stock.

Chart courtesy of

Bullish traders don’t have a lot on Snowflake’s daily chart to hang their hats on.

The stock opened below the 50-day and 200-day moving averages, temporarily rallied back above them and then was rejected again.

That said, here are a few positives.

First, the stock filled the gap from May 3 near $147.50. It’s also holding the May low at $142.44 (and came within a dollar of that mark this morning). Clearly, buyers keep stepping in near this area. 

It’s also holding up above the 78.6% retracement, although I would have liked to see this level tested today.

So how do traders navigate from here?

Don’t Miss: Buy or Sell Anheuser-Busch Stock? Here’s Where It May Find Support.

Keep a close eye on the $140 to $143 area. That’s the 78.6% retracement and this month’s low. A break of this zone could put the $120 to $130 area in play, which has been a huge support zone over the past few quarters.

Those who like the long-term story could consider scooping up some shares in this zone.

On the upside, the bulls need a move up through the post-earnings high near $160. Ideally in that scenario, SNOW shares would go on to fill the gap up near $172.

But with the bearish reaction to the quarter, that type of rally does not look especially likely in the short term.

For now, it’s simple. Watch $140 to $143 to see whether it holds as support. 

Invest like a pro – for less. Our Memorial Day sale is on now! Get exclusive stock picks and ideas from our experts.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News