Week 6 of the sell: the bounce runs dry
Snap slips 4% as the bounce fades and sellers retake control
Week 6 of the sell: the bounce runs dry
Our view last week
Snap's sell signal has reached its fourth week, past the three-week observation window: the short sits at a modest +2.8%. After a 9.8% surge two weeks ago the stock has given back ground for two weeks running, down 3.2% in the latest one, and money flow has turned negative again. On the daily chart it's attempting a bounce with four higher lows toward the 4.6 area, but the latest weekly bar shows sellers firmly in charge and a distribution phase: the attempt already looks strained.
This week's summary
Snap's bounce has run out of steam: after last month's 9.8% surge the stock gave back another 4% this week, the third straight decline, with sellers back in control of the tape, 83% of the volume. Snap stock remains inside its Sell signal, now under management for six weeks and already more than 6.65% in the money for the short: a rising ADX says the downtrend is gaining conviction, not losing it.
IQS Phase
80
in tension / maturity
Signal Strength
35
downtrend making lower lows, pace holding
Sizing
REDUCED
Ranking
#77 / 141
US stocks
Trade P&L %
+6.65%
from signal to today
Rank position
ranks 77th among the 141 sell signals for US stocks in our ranking, with a signal strength of 35 out of 100.
Sector context
SectorCommunication Services
Benchmark ETFXLC
Sector regimeweak phase
Performanceweekly -3.93% · monthly -0.23%
SNAP belongs to the communication services sector (reference ETF XLC). The sector is classified weak phase according to our weekly reading.
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