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Snowflake Price Levels to Watch as Stock Pops 20% on Strong Earnings, Outlook


Key Takeaways

  • Snowflake shares popped 20% in extended trading Wednesday after the data analytics software maker reported better-than-expected earnings and boosted its revenue outlook. 
  • Between September and October, the stock carved out a double bottom, a classic chart pattern that indicates a bullish reversal.
  • Investors should watch key overhead price levels on Snowflake’s chart around $145, $165, $182, and $200, while monitoring an important support area near $125.

Snowflake (SNOW) shares jumped 20% in extended trading on Wednesday after the data analytics software maker reported better-than-expected earnings and boosted its revenue outlook.

The company said it now sees fiscal 2025 product revenue, which accounts for around 96% of total sales, coming in at $3.43 billion, up from its earlier forecast of $3.36 billion, boosted by demand for its software offerings and growing opportunities in the public sector.

Separately, the company announced on Wednesday that it has inked a multiyear partnership with Amazon (AMZN)-backed artificial intelligence (AI) startup Anthropic and agreed to acquire Datavolo, an open data integration platform.

As of Wednesday’s close, snowflake shares had tumbled around 35% so far this year, weighed down by valuation concerns and the departure of the company’s former CEO in February. The stock rose 20% to $154.70 in after-hours trading Wednesday.

Below we navigate Snowflake’s chart using technical analysis and point out important post-earnings price levels that investors may be watching.

Double Bottom Neckline Retest

Between September and October, Snowflake shares carved out a double bottom, a classic chart pattern that indicates a bullish reversal.

More recently, bulls successfully defended a retest of the pattern’s neckline ahead of earnings, setting the stage for further gains. Indeed, the stock sits poised to commence its next leg higher following the company’s better-than-expected quarterly results.

Let’s identify four key overhead levels on Snowflake’s chart that may come into play amid a post-earnings rally and also point out a major support level to monitor during retracements.

Key Overhead Levels to Watch

The first level to eye sits around $145, just above the 200-day moving average. Although the stock looks set to open decisively above this level on Thursday, intraday dips may find buying interest near a key horizontal line that connects multiple troughs with the prominent July peak.

Follow-through buying could see the shares climb to the $165 level, a location where the price may run into overhead resistance near several swing highs that formed on the chart in October 2023, March and May.

The next higher level to watch lies around $182. Investors who have purchased the stock at lower prices could look to sell shares near a brief period of consolidation following the November 2023 gap, which also aligns with several troughs in January.

Finally, a more bullish move may lead to a retest of the psychological $200 level. This region, which sits about 55% above Wednesday’s closing price, could provide selling pressure near a series of minor peaks that formed on the chart between December 2023 and January just below the stock’s 52-week high.

Major Support Level to Monitor

During pullbacks, investors should keep an eye on the $125 level. This area on the chart would likely encounter significant support from the double bottom pattern’s neckline, which may flip from a place of prior resistance into future support.

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As of the date this article was written, the author does not own any of the above securities.


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