{"id":8422,"date":"2021-04-28T09:35:51","date_gmt":"2021-04-28T13:35:51","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=8422"},"modified":"2022-04-06T15:04:54","modified_gmt":"2022-04-06T19:04:54","slug":"snap-cup-handle","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/snap-cup-handle\/","title":{"rendered":"Hot Trade Alert: Why $SNAP is Set Up for Explosive Buy Entry Now"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/snap.jpg\" alt=\"\" title=\"\"><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/snap-cup-handle\/#SNAP_was_one_of_the_biggest_winners_of_2020_Now_this_explosive_growth_stock_is_once_again_setting_up_with_an_ideal_buy_entry_point_Heres_our_analysis_and_simple_trade_plan_to_score_big_profits_from_its_next_potential_breakout\" >$SNAP was one of the biggest winners of 2020. Now, this explosive growth stock is once again setting up with an ideal buy entry point. Here&#8217;s our analysis and simple trade plan to score big profits from its next potential breakout.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/snap-cup-handle\/#Cup_with_handle_on_the_weekly_chart\" >Cup with handle on the weekly chart<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/snap-cup-handle\/#Zooming_in_to_see_the_ideal_buy_entry_setting_up_NOW\" >Zooming in to see the ideal buy entry setting up NOW<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/snap-cup-handle\/#Cup_with_handle_buy_trigger_with_early_entry_points\" >Cup with handle buy trigger with early entry points<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SNAP_was_one_of_the_biggest_winners_of_2020_Now_this_explosive_growth_stock_is_once_again_setting_up_with_an_ideal_buy_entry_point_Heres_our_analysis_and_simple_trade_plan_to_score_big_profits_from_its_next_potential_breakout\"><\/span>$SNAP was one of the biggest winners of 2020. Now, this explosive growth stock is once again setting up with an ideal buy entry point. Here&#8217;s our analysis and simple trade plan to score big profits from its next potential breakout.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Snap, creator the popular Snapchat mobile app, was one of the top-performing stocks of 2020.<\/p>\n\n\n\n<p>After breaking out above its base in October 2020, $SNAP rocketed 150% higher to its recent high in February 2021. <\/p>\n\n\n\n<p>Stocks that score such a big advance generally require a few months of rest to digest their gains and form a valid basing pattern before resuming their strong uptrends.<\/p>\n\n\n\n<p>After consolidating in a sideways pattern for the past three months, $SNAP is now poised for another massive breakout that could launch the explosive growth stock to another wave higher.<\/p>\n\n\n\n<p><em>Continue reading<\/em> to see why $SNAP should be one of the top stocks on your watchlist for potential buy entry now.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cup_with_handle_on_the_weekly_chart\"><\/span>Cup with handle on the weekly chart<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When analyzing stock charts, we start with the longer-term weekly chart time frame to see the &#8220;big picture&#8221; of the overall trend. <\/p>\n\n\n\n<p>On the weekly chart of $SNAP below, notice the stock is currently fleshing out the handle portion of a <a href=\"https:\/\/www.investors.com\/how-to-invest\/investors-corner\/the-basics-how-to-analyze-a-stocks-cup-with-handle\/\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/www.investors.com\/how-to-invest\/investors-corner\/the-basics-how-to-analyze-a-stocks-cup-with-handle\/\">cup with handle pattern<\/a>, one of the most reliable bullish chart formations for buy setups:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210427SNAP5.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210427SNAP5.png\" alt=\"\" width=\"818\" height=\"657\" title=\"\"><\/a><figcaption><em>Press chart to view full-size image<\/em><\/figcaption><\/figure>\n\n\n\n<p>The &#8220;cup&#8221; portion of the pattern is about 35% deep, as measured from the February high down to the March low.<\/p>\n\n\n\n<p>The &#8220;handle&#8221; has formed about 15% off the highs, which is also fine.  <\/p>\n\n\n\n<p>Most importantly, volume surged higher when $SNAP rallied above its downtrend line (from the February high).<\/p>\n\n\n\n<p>Notice the higher weekly volume both when the stock broke above its downtrend line (&#8220;A&#8221;), and again when the price dipped below its 10-weekly moving average (&#8220;B&#8221;).<\/p>\n\n\n\n<p>The increasing volume at those levels points to institutional accumulation, the gasoline that always powers the best stock breakouts.<\/p>\n\n\n\n<p>Although there was not a big percentage gain when $SNAP undercut its 10-week moving average (&#8220;B&#8221;), the reversal price action was bullish and closed well off the lows of the week&#8211;confirmed by a substantial increase in volume.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Zooming_in_to_see_the_ideal_buy_entry_setting_up_NOW\"><\/span>Zooming in to see the ideal buy entry setting up NOW<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Drilling down to the shorter-term daily chart interval, notice the large volume spike on April 23 that was sparked by the company&#8217;s latest earnings report:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210427SNAP6.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/210427SNAP6.png\" alt=\"\" width=\"818\" height=\"657\" title=\"\"><\/a><figcaption><em>Press chart to view full-size image<\/em><\/figcaption><\/figure>\n\n\n\n<p>The opening gap up on April 23 failed to hold, and the stock dipped below its 20 and 50-day moving averages intraday.<\/p>\n\n\n\n<p>However, it&#8217;s quite positive that the price <em>closed<\/em> both above its 50-day MA and near its high of the day.  <\/p>\n\n\n\n<p>On the next day of trading (April 26), the price again dipped below its 50-day moving average, but reversed to close back above it. <\/p>\n\n\n\n<p>After two consecutive days of bullish reversal action, $SNAP closed higher on April 27 and is now set up for an ideal buy entry point. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cup_with_handle_buy_trigger_with_early_entry_points\"><\/span>Cup with handle buy trigger with early entry points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The standard buy entry point for a cup with handle pattern is a break above the high of the &#8220;handle.&#8221;<\/p>\n\n\n\n<p>That corresponds to a <strong>buy trigger above the $65.86 level,<\/strong> which also puts the stock above its resistance in the $64-$65 area.<\/p>\n\n\n\n<p>Although many traders prefer to wait for a break above the handle high before buying, others may be comfortable with testing the water by entering with <em>partial<\/em> share size prior to the highs.<\/p>\n\n\n\n<p><strong>As of April 27 close, there are two such <em>early<\/em> buy points in play:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>If the price pulls back from here, then consider buying with partial share size near support of the 50-day moving average ($60-$61 area).<\/li><li>A break above the April 23 high of $63.20 also presents an early buy entry with partial share size.<\/li><\/ol>\n\n\n\n<p>If buying $SNAP with either of the early entry points above, keep your risk in line by only entering with <em>partial<\/em> share size. Then, consider adding to your position after the price confirms a breakout above the high of the handle (above $65.86).<\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\">Sign up now<\/a> <\/strong>for your Wagner Daily subscription to receive our exact entry, stop, and target prices for $SNAP, as well as our top picks for the most explosive growth stock trade&#8211;sent directly to you every night! Choose <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts#Wagner-Daily-PRO\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts#Wagner-Daily-PRO\"><strong>The Wagner Daily PRO<\/strong><\/a> version to also gain access to our exclusive Morpheus Swing Trader Chat<\/em> <em>and educational mini-lessons.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>$SNAP was one of the biggest winners of 2020. Now, this explosive growth stock is once again setting up with an ideal buy entry point. Here&#8217;s our analysis and simple trade plan to score big profits from its next potential breakout. Snap, creator the popular Snapchat mobile app, was one of the top-performing stocks of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-8422","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=8422"}],"version-history":[{"count":12,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8422\/revisions"}],"predecessor-version":[{"id":8472,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8422\/revisions\/8472"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=8422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=8422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=8422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}