Snowflake Soars 24% In Two Days As Technicals Signal Bullish Breakout

Snowflake (SNOW) surged 20.27% in the most recent session, marking its second consecutive day of gains with a cumulative 24% advance over this period. This explosive price action follows a gradual consolidation phase, warranting a multi-faceted technical assessment of the stock's positioning.
Candlestick Theory
The current two-day rally forms a robust bullish engulfing pattern, with the August 28 session (high: 249.99, low: 218.09, close: 241) completely overshadowing the prior candle. The extended upper wick indicates profit-taking near the psychological $250 resistance, which now serves as a critical near-term barrier. Support emerges at the August 28 low (218.09), reinforced by the pre-breakout congestion zone between 194–200 where volume profile shows historically significant accumulation. The gap between August 27 close (200.39) and August 28 open introduces an unfilled void at 200–218 that may magnetize pullbacks.
Moving Average Theory
Price has vaulted decisively above all key moving averages (50D/100D/200D), confirming a major trend reversal. The 50-day MA (approximating 195–200) maintains upward slope above the gently rising 200D MA (near 170), establishing a bullish stacked configuration. Recent consolidation near the 50D MA in early August provided a launchpad for the breakout, with the current price extension stretching 23% above this mean. The moving average ribbon’s widening dispersion signals strengthening momentum, though the separation from the 50D MA hints at potential short-term consolidation.
MACD & KDJ Indicators
MACD exhibits a powerful bullish impulse, with the histogram expanding to multi-month highs as the signal line crosses above zero – confirming trend acceleration. KDJ registers deeply overbought territory (K-line: >90, D-line: >85) on daily readings, reflecting vertical exhaustion risk. However, the monthly KDJ maintains a bullish crossover with room to extend, suggesting the daily overbought condition may resolve through sideways digestion rather than deep retracement. Divergence is absent; both oscillators align with the primary uptrend.
Bollinger Bands
Price pierced the upper Bollinger Band (2σ deviation) with Monday’s surge, triggering a volatility expansion as bandwidth increases from recent contraction. Such band breaks often precede short-term mean reversion, with the 20-day moving average (currently 208–210) offering a logical pullback target. Nevertheless, consecutive closes above the upper band remain technically constructive in strong uptrends, implying support may emerge at the midline (20D MA) rather than the lower band barring fundamental deterioration.
Volume-Price Relationship
The breakout is validated by surging volume, with August 28 turnover (42M shares) quintupling the 30-day average. Accumulation/distribution metrics show net inflows during the consolidation phase, while the volume-weighted average price (VWAP) since May’s swing low anchors near 200 – a high-value support zone. The volume spike on ascent confirms institutional participation, though retracements must show diminished volume to confirm healthy profit-taking rather than distribution.
Relative Strength Index (RSI)
Daily RSI has rocketed to 82, deep in overbought territory (>70) and approaching extremes last seen during the February breakout. While this warns of short-term exhaustion, monthly RSI (approximating 65) remains below overbought thresholds, preserving structural upside room. Notably, RSI diverged positively during August’s basing pattern (price stabilized while RSI trended higher), foreshadowing the breakout. Traders should monitor for RSI failure below 70 as a potential reversal signal, though overbought readings can persist during parabolic moves.
Fibonacci Retracement
Applying Fibonacci to the primary uptrend from the September 2024 low (108.56) to the August 2025 high (249.99) reveals critical retracement supports: 23.6% (216.61), 38.2% (195.99), and 50% (179.28). Shorter-term analysis using the May–August rally (178.91–249.99) shows tighter levels at 233.22 (23.6%), 222.84 (38.2%), and 214.45 (50%), which align with the August 28 low (218.09) and the volume node at 200. Confluence exists between the 23.6% primary level (216.61) and the shorter-term 38.2% level (222.84), establishing 216–223 as a high-probability demand zone should profit-taking accelerate.
Confluence and Divergence Observations
Confluence emerges around the 214–223 support band, where Fibonacci retracements, volume-based value areas, VWAP, and the 50D MA intersect. This zone offers a high-reward pullback entry for trend continuation. The MACD/RSI/volume configuration affirms bullish momentum, though Bollinger Band expansion and KDJ’s vertical positioning suggest consolidation is overdue. Notably absent are bearish divergences between price and momentum oscillators. Traders should monitor the $250 psychological resistance for rejection patterns, while sustained closes above 240 would signal capacity for further upside toward measured move targets near $275.