Snowflake Stock – How to Trade It After Earnings Rally
Snowflake (SNOW) – Get SNOWFLAKE, INC. Report has been all over the place since reporting earnings after the close on Wednesday.
The initial reaction was lower in after-hours trading despite a pretty solid report ij which sales more than doubled year over year.
After some up-and-down action after the open, Snowflake has resolved to the upside, currently up about 6% on the day.
Despite a wider-than-expected loss, Snowflake reported strong revenue growth and provided a strong outlook for next quarter and the full year.
Analysts have been boosting their price targets on the stock following the report.
Trading Snowflake Stock
Despite Thursday’s rally, shares remain 30% below the all-time high, which was set in December.
It’s important to keep that in mind, as this stock has had quite the bumpy run despite an initial explosion higher after its initial public offering.
Shares are gapping higher on the day, but with its wide range above and below the open, it’s clear that investors are still trying to digest the quarter. If shares can stay above the $290 level, I believe the bulls can maintain control.
That’s roughly today’s low, as well as the prior high from this month. To stay above $290 keeps $300-plus in play.
A move below $290 in the short-term puts the 10-day and 21-day moving averages on the table, along with the $275 level.
Below that and bulls may get an opportunity to buy a deeper dip. That comes if we get a test of the rising 50-day moving average and the 200-day moving average, which both come into play around $265 at the moment.
On the upside, look for a move over Thursday’s high, currently at $307.42. Above that puts the 61.8% retracement in play near $335, followed by a potential move to the $350 to $360 area.
For now, bulls are trying to take control but they have yet prove themselves in a truly convincing manner. Keep an eye on $300 and the $290 mark.