There was a lot of hype for Snapchat (SNAP) and its IPO a few months ago in March 2017. While there are quick riches to be made in IPO's, fortunes can also be lost. Purchasing shares after SNAP's IPO would have resulted in disaster.

While I haven't written a full length article on Snapchat quite yet (this is my first), I did comment on its issues since becoming public in this previous Trendy Stock Charts Facebook (FB) article:

"2/12/2017 – SNAP Pressure Fades, Facebook (FB) Uptrend Resumes"

I wasn't very keen on SNAP's share price in that article. Hopefully I steered most away from wanting to invest in the company. It has been a couple of months now since that February article. Let's see if SNAP's recent chart activity can change my mind and make me bullish on its outlook.

Snapchat (SNAP) - Downside Price Targets

So what does Snapchat (SNAP) have to offer in way of charts? Not much. It has been a public company for less than 6 months now. But one thing is definitely clear - SNAP's share price is in a downtrend.

This candlestick chart captures all of SNAP's price activity since its IPO. There are 2 different Fibonacci Extension Tools overlaid on this 1 year daily candlestick chart to help calculate downside price targets.

Using Fibonacci Extension Tools to Calculate Downside Price Targets for Snapchat's (SNAP) Share Price

Notice there are 2 downside price target areas. I do not suggest…...

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I continue reviewing and discussing some pullback areas to use for trading a small position in the stock. See why I do not recommend purchasing shares for the long-term quite yet.

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dkling1977

July 17, 2017 at 11:53 AM

I was just about to ask for a snap article. Perfect! I believe the insiders can sell end of July., so the stock has alot of pressure. Definitely watching for the reversal. Nice article and thanks.

Limit5Bass

Author

July 17, 2017 at 12:09 PM

This article lays out 3 different offering dates….in total there are over a billion more shares coming on the market…

https://seekingalpha.com/article/4080445-snap-billion-reasons-sell

July 29, 2017 at 12:23 AM

Considering that SNAP already pulled back into the upper support zone and the secondary offering hasn’t happened yet, I think I would be waiting for the lower support area after a failed and miserable earnings. There could be a quick trade from here back up to the $16ish area, but that is a risky one. Wait for some sort of capitulation day with SNAP and it should probably happen right around the lower support area. This downtrend will not reverse without capitulation.