{"id":9004,"date":"2021-09-23T09:15:01","date_gmt":"2021-09-23T13:15:01","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=9004"},"modified":"2022-04-06T15:04:53","modified_gmt":"2022-04-06T19:04:53","slug":"snap-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/snap-breakout\/","title":{"rendered":"Hot Trade Alert: Why $SNAP is set up for a Massive Breakout Now!"},"content":{"rendered":"\n
\"Snap<\/figure><\/div>\n\n\n\n

Social media platform $SNAP has been ignoring recent market weakness and is now poised for an explosive breakout to fresh all-time highs. Here’s a quick walk-through of why this hot trade setup may deserve a spot in your growth stock portfolio now.<\/h2>\n\n\n\n

Most stocks have sold off alongside of the major indices over the past several weeks.<\/p>\n\n\n\n

However, several leading stocks bucked the trend by holding firmly near their recent highs, even as both the S&P 500 and Nasdaq Composite fell below support of their 50-day moving averages. <\/p>\n\n\n\n

If a stock is so strong that it merely drifts sideways while most other stocks are falling, the stock has high relative strength<\/em> to the broad market.<\/p>\n\n\n\n

Not surprisingly, stocks with such relative strength are typically the first to rocket higher when the main market indexes eventually bounce.<\/p>\n\n\n\n

Stocks with high relative strength are a key focus of the swing trade setups we look for in our nightly stock pick report<\/a>.<\/p>\n\n\n\n

$SNAP – A “base on base” with high relative strength<\/h2>\n\n\n\n

On September 22, we alerted Wagner Daily<\/a> <\/em>subscribers that we were buying Snap, Inc. ($SNAP) in the Model Portfolio.<\/p>\n\n\n\n

At the time, $SNAP had just rallied above the downtrend line of its current base of consolidation.<\/p>\n\n\n\n

Higher volume confirmed the bullish advance.<\/p>\n\n\n\n

On the daily chart below, notice how $SNAP has been holding firmly at its 50-day moving average (blue line)–even after the NASDAQ Composite gapped sharply below its 50-day MA on September 20:<\/p>\n\n\n\n

\"\"<\/a>
Press to view full-sized image<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Notice the relative strength line (bottom of chart) moved to the top of is range ahead of the stock price, which is bullish.<\/p>\n\n\n\n

This is because $SNAP has merely been drifting sideways while the S&P 500 has been trending lower over the past few weeks.<\/p>\n\n\n\n

The longer-term weekly<\/em> chart of $SNAP is also compelling.<\/p>\n\n\n\n

As shown below, the current flat base formed near the high of the previous base, thereby creating a bullish chart pattern known as base on base<\/a>:<\/p>\n\n\n\n

\"\"<\/a>
Press to view full-sized image<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

The low of the current base is just 14% below the high, while the previous base was 35% deep.<\/p>\n\n\n\n

We bought a partial<\/em> position of $SNAP in the Wagner Daily<\/a><\/em> model portfolio on September 22, after the price broke above the downtrend line.<\/p>\n\n\n\n

Now, we are planning to add to the position after $SNAP breaks out above the high of its base to a new all-time high.<\/p>\n\n\n\n

Newsletter subscribers should note our exact buy trigger, stop, and target prices for the $SNAP setup in the Watchlist<\/em> section of the September 23 report.<\/p>\n\n\n\n

Sign up now<\/a><\/strong> to receive exact trade details for the next explosive growth stock setup with high relative strength.<\/p>\n","protected":false},"excerpt":{"rendered":"

Social media platform $SNAP has been ignoring recent market weakness and is now poised for an explosive breakout to fresh all-time highs. Here’s a quick walk-through of why this hot trade setup may deserve a spot in your growth stock portfolio now. Most stocks have sold off alongside of the major indices over the past […]<\/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-9004","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9004","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=9004"}],"version-history":[{"count":8,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9004\/revisions"}],"predecessor-version":[{"id":9030,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9004\/revisions\/9030"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=9004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=9004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=9004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}