Since March, there has been a top on the shares of Snap Inc. SNAP.
A large concentration of sellers have been offering their shares at the $64 level. It has been resistance. There has been more than enough supply to satisfy all of the demand.
This is why each time Snap got to $64, the rally ended and a new downtrend formed.
If the shares reach this important level again, there is a good chance they hit resistance once more. If Snap can break through, it will show these sellers have finished their orders.
Buyers will be forced to pay higher prices. This could force the shares into rally mode.
But if the resistance doesn’t break, it means the sellers aren’t done. Another downtrend could form.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
