Snap Shares Were Trading In Bullish Pattern: Here's What Happened Next

Snap Inc. SNAP shares were gaining ground Friday, pushing the stock to a new 52-week high of $82.97.

The stock is moving higher, although there looks to be no company specific news to explain the jump in share price. 

Snap was up 4.44% at $82.88 at last check. Here's a technical analysis. 

Snap Daily Chart Analysis

• Shares were trading in a bullish flag pattern before they were able to break out of resistance and make a new 52-week high.
• The stock will likely push higher for a short time until cooling off and possibly consolidating. Consolidation while holding gains is key for the stock to be able to continue moving higher.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) shot higher the past few days after the stock started to make its breakout move and now sits at 66. This move shows there is much more buying pressure than selling, and the stock is also nearing the overbought range where the pressure of buyers greatly exceeds sellers.

Related Link: Snap Shares Trading In A Bullish Pattern: Here's What Could Happen Next

What’s Next For Snap?

Bullish traders want to see the stock continue to power higher for as long as it can before a cool off. When the stock cools off, bulls would then like to see the stock consolidate while holding gains and then make a push higher on a second leg up.

Bearish traders would like to see the stock fall back into the flag pattern and drop down below the pattern support. The $65 level previously acted as resistance and may act as support. Bears are hoping for a break below back into the sideways channel.