What Is '523,' And Why Is Snap Stock Flying Since Its Release?

Snap Inc. SNAP shares are trading higher Wednesday as many social media stocks are moving up.

Snap launched a new program on Tuesday named “523,” a new content accelerator program for smaller, minority-owned content companies. This new program will award 20 minority-owned media upstarts $10,000 per month for six months to help them create content.

Snap was up 7.62% at $54.24 Wednesday afternoon. 

Snap Daily Chart Analysis

• Shares look to have recently bounced off support in a sideways channel and are now pushing higher toward the resistance level.
• Shares are climbing and moving up toward the $65 level after bouncing off support. Support was found near the $48 level, as this is near an area where the stock has found support a few times in the past.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) made a large jump and moved to 54 on the indicator. This shows that many buyers have pushed into the stock and now overall buying pressure is greater than selling pressure.

What’s Next For Snap?

Bullish traders are looking to see the stock be able to stay above support and then start to form higher lows up toward resistance. Bulls would then like to see the resistance level get broken and for the stock to be able to consolidate above this level. This could hint the stock is ready for a further upward push.

Bearish traders are looking to see the stock fall back below the $48 level and be able to hold below it. If this level can hold as an area of resistance, the stock could see a strong bearish push in time.