Snapchat – Fundamental & Technical: Sell

 

Today, I would like to take a look at Snapchat from a Fundamental and Technical point of view.

 


Let’s start with some  FUNDAMENTALS from the IPO of Snapchat


 


Conclusion FUNDAMENTALS: Seems like Snapchat is a bit expensive….especially since it does not make a profit, growth seems to be decreasing, and competitors are cheaper. 



 

& now the Technical Analysis

 


TECHNICALS – What will happen with Price once the underwriters stop supporting the IPO process? Supply > Demand –> Price Down?


The first day of trading it opened at $24 and formed a High @ 26.05, but during the day, sellers stepped in and pushed the price back to a close of 24.48, forming a candlestick known as an inverted Hammer (bearish).

The second day of trading it gapped at the open, to the upside @ 26.39, formed a new intraday High @ 29.44 but once again, sellers stepped in during the day and pushed prices down to a close of 27.09 forming another inverted Hammer.

The optimist would say that both days, Higher Lows and Higher Highs were formed.

The pessimist claims that sellers step in and the candlesticks show two inverted hammers, which indicates that bulls are not strong enough to keep prices up at the highs of the day.

For the short term, I’m in the corner of the pessimists, aiming for a $20-23 target between now and early April, the next major cycle date and a blue print of the IPO pattern that we saw before with Facebook, Twitter and Alibaba.

Short term: Sell into green ellipse is my plan….I have a small short position, entered last Friday @ 26.73.


 

 


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The following documentary shows 3 Cycles of Time that have a direct impact on our lives and investment decisions:

  1. Global Warming and the next Ice Age to come. CO2 will be reduced significantly, same as every cycle has happened so far.
  2. The bond market will collapse, interest rates will go up and stocks will boom.
  3. The cycle of wars, approaching the climax near 2020.

Although I saw this documentary for the 1st time today, it perfectly aligns with my view on how we should invest for the next couple of years:

Capital Preservation Fund

Check out the Documentary here: Documentary “Missing Links – The Cycles of Time” 



READ MORE: 


DAX Cup and Handle Pattern

The Trend is our Friend Dashboard: Stocks USA and EU, Commodities, Bitcoin and Interest Rates

S&P500 vs VIX – something doesn’t add up

S&P500 Elliott Wave and Cycles

Snapchat, same IPO pattern as Facebook, Twitter and Alibaba? 


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