With the slight pullback in the market last week, there are some stocks that I’m keeping an eye on right now.

One name that’s on my radar is Snap Inc (SNAP).

Why?

Well, I noticed some dark pool activity in the name recently…

And with this pullback, I think it can provide me with a clear entry to potentially express a bullish opinion.

Today, I want to show you what I’m watching in SNAP and some key levels to keep in mind right now.

 

Can SNAP Rebound And Pop Soon?

 

Last week, I saw some dark pool activity in SNAP…

 

 

The stock continued to hit the scanner and the chart is in an uptrend and just looks so strong on the daily chart.

 

Source: thinkorswim

 

The selloff in the market on Friday caused SNAP to pull back into a key support level. Right now, the stock is sitting at the 8-day exponential moving average (EMA), the blue line in the chart above.

This is one area I’ll keep an eye on in the coming week.

If it breaks below that, the next key support level is at the 21-day EMA, the green line in the chart above, around the $21.50 level.

Now, there are some potential catalysts in play here.

With large companies pulling advertising from Facebook Inc. (FB), they may start looking to advertise on other social media platforms.

If we see these companies pile into SNAP, then the stock could break out.

Whatever the case may be, I’m going to remain patient and see what the charts tell me.

With the way the market is acting, I think it’s important to remain patient because things can change very quickly.

We’ve seen coronavirus cases tick up and that can spook traders… so I’m going to wait for a clear signal in SNAP.

If I do decide to make a move in SNAP, it may be through calls.

Why?

It actually limits my risk and I can go to bed knowing the maximum amount I can lose.

I haven’t really decided yet, because I need to see whether the options are expensive or not.

Whatever I decide to do with SNAP, whether it be buying shares or calls, I’ll be sure to let my subscribers know.

 

 

 

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Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

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