Snowflake - going to miss the earnings?!

5月22日

Today, Snowflake’s earnings are due, and it’s an important event to watch. Looking at the stock’s history since its debut on the New York Stock Exchange in September 2020, we can identify a crucial zone that initially acted as support but has since turned into a resistance zone.
We’ve seen attempts to break above this resistance at around $210, but these have been unsuccessful, with the price falling back below this level leaving behind an earnings gap. Currently, we have what can be referred to as the "Mother-of-all-Trend-Lines." These are two trendlines running parallel, forming a channel that has been critical in maintaining the chart’s structure.
This channel is crucial for holding the overall trend of the chart. For Snowflake to realize its upward potential, it needs to sustain these trendlines and break above the resistance zone at $210. Successfully flipping this resistance into support, particularly with the support of the high-volume node, is essential for a push upwards, unlike what happened at the beginning of 2024.
While there is significant upside potential for Snowflake, it will take time. The stock must not only hold the "Mother-of-all-Trend-Lines" but also convincingly break and maintain the $210 resistance level.


A closer look at Snowflake reveals that the high-volume node (HVN) plays a critical role in the chart's overall structure. The upper edge of this HVN has worked with the resistance zone, serving as a strong resistance point. Meanwhile, the lower edge has acted as a solid support line, holding up the price on four occasions.
We could see another test of the Point-of-Control (POC) before potentially moving higher. There's a significant earnings gap of approximately 14% that needs to be closed. According to typical charting techniques, all gaps are eventually closed; the question is only when.
We believe that this gap will be at least tested. Whether it will be fully closed depends on if the resistance zone around $210 can be flipped into support.
If Snowflake fails to flip this resistance, we might only see a gap test followed by another sell-off. The situation remains uncertain, so we plan to stay on the sidelines for now, closely monitoring the developments. We will observe how the stock behaves around the POC and the resistance zone to determine our next move.