Snowflake at a Critical Support Level: Will It Plummet or Rebound?

Overall Trend: EMA5, EMA10, EMA20, and EMA60 are in a bearish alignment, indicating that the stock is in a clear downtrend channel

Support and Resistance Levels: 141.800 has been tested multiple times over the past year as a support level, but it was decisively broken with high volume on May 30 and May 31, turning it into a resistance level. The next support level for the stock is approximately in the 120-130 range, which is likely the last effective support for SNOW

MACD: If a high-volume break below the support level is accompanied by a MACD bearish crossover, it often signals a particularly strong bearish trend. Unfortunately, a MACD bearish crossover also occurred on May 24, which could indicate a significant potential downside

Trend Reversal: However, note that the KDJ indicator's J-line has been below 20 for eight consecutive trading days, and the TD Sequential indicator showed a 9 on June 3. These are two potential reversal signals

Overall, the worst-case scenario at present is a high-volume break below the next support level, which could lead to the stock plummeting along the downtrend channel. The more favorable scenario would be consolidation within the 130-141 range, gathering momentum for an upward breakout. SNOW tested the 130 support level yesterday, and fortunately, it held for now. However, it is best to stay vigilant and decide on specific actions based on further developments.

Disclaimer: This is for study purposes only and does not constitute financial advice. You are responsible for your own trading risks.