I have posted a series on SNAP since post-ipo where I outlined a Deep Crab target @ 15. The stock has dropped from the $23-24 area to the pattern PRZ that actually points < 15 to the $14 level. The daily chart is now poised to complete an AB=CD @ 13.85. If the "ballpark area is 14-15, I expect that 13.85 to serve as a structural low extreme. One concern: RSI was stabilizing until a recent rollover into deeper oversold territory = still needs time but this is the exact zone to target with multiple harmonic structures. The delayed RSI reversal affirms a likely dip below 14 quite soon before the entire scenario is officially complete but the indicator is bottoming out.
Both patterns represent the extreme downside limit from a harmonic perspective. This is an important case where multiple patterns have been acting as the target for the current predominant downtrend while defining the harmonic limits of the entire post-ipo cash out. Despite the strong downside action, I do not want to ignore the potential opportunity outlined weeks ago that is now upon us. The entire situation is unfolding rapidly and may seem intimidating but the larger zone between 14-15 with an additional pattern structure that must not be ignored. I will follow up when RSI and the TERMINAL BAR are triggered because this scenario has been an excellent example of extreme PRZ completions, particularly common in Crab patterns.
Please review these posts since the beginning to follow how the structural formations identified the price parameters of the situation and that defined this larger downside target zone b/w 14-15.
Profit target? based on this chart it will be 0% or definitely negative!!! Facebook is presenting its earnings tonight with a main focus on Instagram (Snap's largest competitor)
Technicals are only 50% of the picture. Besides, as I have pointed in your earlier posts, you can't rely only on the price in combination with RSI... statistically they are highly dependent (multicolinearity issue). Moreover, RSI is only effective in a trading market, when there is a trend, RSI often produces wrong signals. Sure, you can spot divergences with RSI, but they still have to be confirmed by other indicators.
Deep Crab is outside my knowledge so no comments on that.
SNAP should hit 10/share.
ScottCarney
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@AlphaSollertis, THANK YOU FOR THESE COMMENTS. I look at market movements, measure with ratios and sine wave structures (AB=CD) and look to confirmation readings such as RSI to define the natural limits of any price segment. For two months, I have clearly pointed out that SNAP was headed to a minimum target @ 15 with an update that suggested 13.85 as the structural limit. Today's reversal in this 13.85 area is a capitulation albeit still early but clear evidence that the sellers are hitting serious natural support. I agree that singular RSI readings are flawed but even Wells Wilder himself stated that it is in the 2x confirmation/integration where these readings are of greatest value. SNAP is still a wait and see. But it reached the extreme harmonic limit and I am no longer bearish and I want to look to enter at or just under the AB=CD completion point 2 13.85.
Technicals are only 50% of the picture. Besides, as I have pointed in your earlier posts, you can't rely only on the price in combination with RSI... statistically they are highly dependent (multicolinearity issue). Moreover, RSI is only effective in a trading market, when there is a trend, RSI often produces wrong signals. Sure, you can spot divergences with RSI, but they still have to be confirmed by other indicators.
Deep Crab is outside my knowledge so no comments on that.
SNAP should hit 10/share.