January 4 Chart of the Day - Snowflake
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Snowflake (SNOW) offers cloud-based data storage and analytics under a business model often labeled as Data as a Service (DaaS).
If you've never heard of them, first impressions may have you thinking so what, another cloud based software company?
But this cloud based company seemingly is different for one simple but major reason: Warren Buffet's Berkshire Hathaway reportedly owns over 6 million shares in the company...
Now that will get a company headlines along with a lot of scrutiny along the way.
Some say the company's focus on AI might be undervalued but in reality do they really know that for sure?
Perhaps, but we wanted to review their chart from a price action technical analysis perspective.
First things first, on the monthly chart we can see that relatively speaking there isn't a lot of historical data. But what is there has gone through and is still going through what we consider a "price discovery phase" and practically speaking, the chart has followed technically correct Fibonacci sequences to the downside.
The chart appears to be in consolidation mode for over the past year still creating price structure but holding above its young $110.27 all time low.
Down on the weekly chart we can see the sideways movement cycling up and down as it decides which way its next trend move may be.
Attempting to answer "where could price go" we've identified potential targets to both the upside as well as the downside like all good chartist should do.
Sure, speculators may already have positions to the upside but literally nobody ever knows with any certainty what price will do in the future.
So that's why we develop bi-directional price levels of interest from which investors and traders can develop plans from.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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