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Technical view: Snowflake (SNOW)

Technical view

SNOW is in stage #4. The company had stellar earnings that helped to stop the downward trend but not enough to reverse it. It is still in a declining trend but attempting to break above the 50-day MA. The weekly chart indicates a possible double-bottom process as well. Given the great business model the company has, I think this is a great opportunity to buy this stock cheap. The weekly chart also shows a potential double bottom. But it may change if we crash below.

Technical view

On a fundamental basis, the stock is still very overvalued, but it will catch up once the company matures over time.
The chart below shows that the stock struggles to gain new momentum and that the uptrend has been broken. It is still pointing to the upside, but the weak trend may fail completely, and the stock may resume a downtrend before investors become optimistic about tech stocks again.

Technical view

The stock is now MODERATE BUY

This post was published in our newsletter to our subscribers on Saturday, November 26th, 2022. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

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