Oh SNAP!

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[/et_pb_text][et_pb_text _builder_version=”4.12.0″ _module_preset=”default” global_colors_info=”{}”]Alright folks, today we’re gonna take a look at snap ticker is s and a p, one that has been beaten down mightily post earnings back at the end of October slanging down from 75, down to about 55, or a $20 haircut on stock. So, now that this looks fairly weak, we are watching a potential bottom formation as a longer term value type play. We also have favorable seasonality around this time heading from about mid November into the end of December during historically bullish time of the year for stocks in general, that we are looking at a couple of things here. So looking at the longer term chart here on the left, which is the weekly and the shorter term timeframe, which is the daily on the right, we are looking for signs that can fluid so this is an area of structure support that we identified well in advance, and you’ll notice that the earnings report came down and respected this area nicely. So after we came down, we continue to sell off. Now you can start to see a little bit of sideways movement, where it appears that the buyers are soaking up some of this last remaining selling pressure getting this little rounded bottom down here into longer term support structure. And now we are looking to the buyers. Now full disclosure, I am already long snapper via options. But what we’re but what we have here is a very favorable risk reward place. So if we’re looking to get long around here in this 55 Double nickel area, our risk is going to be down here depending on how aggressive you want to be. Basically I’d give it around four or $5 of risk. We’re looking to take this back up to the gap fill which would be around $75. So we’re looking for about a $20 move here are $20 target with roughly $5 of risk. Keep in mind we may have a little bit of headwinds here at the 200 day moving average resistance but if we can get back above that area should be all cells ahead for the gap fill at 75 This may take some time folks so you can buy some buy the stock and sell call options against it bringing some income in via a cover call, thereby lowering your cost basis and or sell bull put credit spreads. If we decide to trudge around in this area, some or longer term players could buy call options, giving yourself enough expiration room for this to trade to the upside so we’ll see how this one works. And we’ll see in the next update[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]