Snap's bounce doesn't convince the money flow
Snap stock +7.8% this week, but money flow says caution
Snap's bounce doesn't convince the money flow
Our view last week
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.
This week's summary
Snap stock closed the week up 7.8%, its first gain after three straight down weeks, with buyers back in control of the tape. The technical picture doesn't confirm the turn though: money flow keeps worsening, at its lowest point of the period, while overall volume contracts. The short position, in play for six weeks and up more than 6% a week ago, is now close to breakeven.
IQS Phase
70
in tension
Signal Strength
4
decline losing steam
Sizing
MINIMUM
Ranking
#95 / 138
US stocks
Trade P&L %
-0.64%
from signal to date, no stop loss
Rank position
ranks 95th among the 138 sell signals for US stocks in our ranking, with a signal strength of 4 out of 100.
Sector context
SectorCommunication Services
Benchmark ETFXLC
Sector regimein positive regime
Performanceweekly +1.83% · monthly -1.37%
SNAP belongs to the communication services sector (reference ETF XLC). The sector is classified in positive regime according to our weekly reading.
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