Snap Inc. (SNAP) stock has finally sprung up in 2020, achieving an astonishing 306% annual return. TikTok’s troubles with the Trump administration ignited a stock fire in August, with young devotees of Chinese apps kicking tires just in case they were forced to abandon the ship. This marks an excellent opportunity to introduce programs that include personalized public archives and advanced analytics accessible to users.
After breaking the highest and lowest expectations for the third quarter of 2020, the stock plummeted in October, and the price almost doubled to reach an all-time high of $54.71 on December 17. However, since then, it has issued three red weekly bars warning that although the rally continues, the rally has “gagged.”
This weakness can easily be converted into an intermediate correction, which provides a buying opportunity at a lower price level. Fortunately, for the bulls, the October-November sideways consolidation formed a trading bottom line in the mid-1940s, closely related to the 50-day exponential moving average (EMA) support.
This is the price level to be observed in the coming weeks, as a strong rebound will lay the foundation for an offensive from the December high. However, a break below is likely to attract a lot of short selling, exposing more downside space to the breakout gap between 29 and 35 dollars on October 21.
Rise on SNAP stock price
Due to the sharp rise in the stock price, Wall Street’s consensus on Snap stock has deteriorated. Based on 24 “buy” and 7 “hold” recommendations, it has been given a “medium buy” rating. An analyst now advises shareholders to close their positions and instead takes a wait-and-see attitude.
The target stock price ranges from a low of $24 to a high of $70 on Goldman Sachs Street, and the stock is set to open on Tuesday, nearly $7 higher than the median target price of $42.50. This placement indicates that Snap has “completely evaluated” at this time.
The company went public in March 2017 at US$24.00, and the highest price on the following trading day was US$29.44. The subsequent downward trend ran through the opening price of the IPO and continued, falling to an all-time low of $4.82 in December 2018.
Buyers returned in 2019, which produced a slow but steady upward trend, which stalled in July. Efforts to break this level in January 2020 failed, causing the decline to hit a new low in March. The strong wave of recovery reached the high of the first quarter in May, broke immediately, and reached within three points of the July 2017 high.
It closed at $20 in August and then suddenly moved higher after the blowout earnings report was released. This impulse stagnated in the mid-1940s in October, broke through this barrier a month later, rose to a historical high in December, and then quietly pulled back to the end of the year.