After a precipitous drop from the IPO
highs set in March 2017, SNAP
shows signs of intelligent accumulation between $12 and $17, starting in July/August 2017. A selling climax, automatic rally, and secondary test completed Phase A. The secondary test was successful, as it made a higher low relative to the selling climax on lower volume
. The following rally was not met with supply until after price created an upthrust above the automatic rally high around $17. Price revisited the bottom of the accumulation range relatively quickly, with a large volume
spike on November 8, 2017. Despite the extra effort, it was unable to make a new low. A dynamic rally ensued, showing expanding volume
and widening spreads, bring the price above the automatic rally high and into the area of the previous upthrust in Phase B. The next and final decline had relatively smaller spreads and low volume
, indicating a controlled reaction into the final testing area. Phase C ended after a low-volume higher low was established, followed by a dynamic gap-n-go Sign of Strength Rally on big volume
. The last two weeks began the Backing Up Action to test for more supply, prior to a significant mark up. Expect a smaller range between $16/17 and $21 as Phase D plays out. Unless significant supply emerges and manages to push the price deeply into the trading range, this smaller range should resolve into a strong Phase E mark up.
Horizontal Point & Figure analysis from Phase C to Phase A hints at a target around $32. The target can be extended following the completion of the backing up action, once the mark up commences.