Snowflake Price Levels to Watch as Stock Pops 20% on Strong Earnings, Outlook | Global News Avenue

snowflake(SnowShares of the data analytics software maker rose 20% in after-hours trading Wednesday after the company reported better-than-expected earnings and raised its revenue outlook.

The company said that due to demand for its software products and growing opportunities, it now expects product revenue to reach $3.43 billion in fiscal 2025, accounting for about 96% of total sales, up from its previous forecast of $3.36 billion. . public sector.

Separately, the company announced Wednesday that it has signed a multi-year partnership with Amazon (Amazon)-support Artificial Intelligence (AI) Startup Anthropic has agreed to acquire open data integration platform Datavolo.

As of Wednesday’s close, Snowflake shares have fallen about 35% year to date, hurt by Valuation concerns and the departure of the company’s former chief executive in February. The stock rose 20% to $154.70 in after-hours trading Wednesday.

Below we navigate Snowflake’s chart using technical analysis and pointed out important post-earnings price levels that investors may be concerned about.

Double bottom neckline retest

Between September and October, Snowflake stock created a double bottoma classic chart pattern that indicates a bullish reversal.

Recently, bulls successfully defended a retest of the pattern neckline Ahead of earnings, setting the stage for further gains. In fact, the stock is poised to begin its next leg higher after the company reported better-than-expected quarterly results.

Let’s identify four key overhead levels on Snowflake’s chart that could play a role in the post-earnings rally, and point to a major factor support level Monitor during retracements.

Key Spending Levels to Watch

The first level price is about $145, which is slightly more than 200-day moving average. While the stock will open significantly above that level on Thursday, an intraday decline could find buying interest approaching key points horizontal line Connect multiple trough The July peak is prominent.

Follow-on buying could see the stock climb to the $165 level, where the price could encounter overhead resistance of close to a few dollars. volatility high Formations on the chart are in October, March and May 2023.

The next higher level to watch is around $182. Investors who purchased the stock at a lower price may consider selling the stock in the short term merge Following November 2023 gapwhich is also consistent with several troughs in January.

Finally, a more bullish move could lead to a retest psychology $200 level. This area is about 55% above Wednesday’s close and could provide selling pressure near a series of small peaks on the chart that formed between December and January 2023, just below the stock’s closing price. 52-week high.

Major support levels to monitor

period callbackinvestors should focus on the $125 level. This area on the chart may encounter significant support from the neckline of the double bottom pattern, which may turn from previous resistance into future support.

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As of the date of this writing, the author did not own any of the securities mentioned.