Snowflake Gains 3.16% Amid Technical Signs of Bullish Reversal

Snowflake (SNOW) concluded the most recent session with a 3.16% gain, closing at $242.52 after trading within a $239.50 to $245.76 range.
Candlestick Theory
Recent price action shows Snowflake attempting to stabilize after a pullback. The prominent bearish engulfing pattern on 2025-08-28 near $249.99 remains a significant resistance zone ($245-250). The current session's green candle following consolidation near $225-$235 suggests a potential bullish reversal attempt, though confirmation is needed. Key near-term support is now evident around $220-$225, formed by the cluster of lows in late September and early October. Resistance is firmly established between $245 (recent swing high) and the major August peak near $250.
Moving Average Theory
Snowflake exhibits mixed signals across moving averages. The stock currently trades above its 200-day moving average (long-term trend proxy), which remains upward-sloping, indicating the primary bull market is intact. However, the 50-day MA has crossed below the 100-day MA recently, signaling bearish near-term momentum and potential consolidation pressure. The price oscillating near these shorter averages ($235-$240 range) highlights indecision. Sustained trade above the 50-day MA ($~$235) would be a near-term bullish development, while a hold above the 200-day MA ($~$180s) is crucial for the longer-term uptrend.
MACD & KDJ Indicators
The MACD shows signs of bottoming. The histogram has been printing less negative bars recently, potentially indicating waning bearish momentum. The MACD line itself is trying to turn upwards from deeply negative territory. The KDJ adds a more positive near-term signal; the %K line recently crossed above the %D line from oversold territory (sub-30) following a trough around $215. This crossover suggests potential bullish momentum emerging in the short term. Both oscillators agree on waning downward pressure and the possibility of a near-term upswing.
Bollinger Bands
Bollinger Band width has contracted significantly compared to the volatility surge seen in late August ($241 peak), suggesting a period of relative consolidation and decreasing volatility after the sharp move lower. The price, after probing the lower band during the September pullback, has now moved towards the middle band (typically the 20-period SMA). This shift from the lower band towards the center band often signals a reduction in bearish pressure and a potential basing process. A decisive break above the middle band is often a precursor to testing the upper band.
Volume-Price Relationship
The recent up day (2025-10-06) closed positively on increased volume compared to the prior session (5.13M shares vs. 4.07M), providing validation for the price gain and suggesting stronger buyer conviction. This contrasts with the high-volume distribution seen during the August peak ($249.99 on extreme volume) and the subsequent high-volume sell-off. Recent down days have generally seen lighter volume during the September consolidation, suggesting less intense selling pressure than during the August drop. The volume profile supports the narrative of a potential stabilization or basing attempt.
Relative Strength Index (RSI)
The daily RSI, calculated from historical gain/loss averages, currently reads around 52. This places it near the neutral midpoint, reflecting the recent consolidation phase and alleviating any immediate overbought concerns. The RSI has recovered from oversold levels below 30 seen during the September low around $215. While a neutral RSI provides no strong directional signal alone, its rise from oversold territory aligns with the potential for building bullish momentum. It has ample room before reaching overbought territory (70+), reducing immediate risk of exhaustion on a rally.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing low from April 2024 ($114.82) to the peak of August 2025 ($249.99) provides critical levels. The 38.2% retracement level sits near $230, which acted as strong support during the late September/early October consolidation. The price is currently trading above this level. The more significant 50% retracement lies near $232, offering additional psychological support. A breakdown below this would target the crucial 61.8% retracement level near $208. The recapture of the 38.2% level is a positive technical signal.
Confluence and Divergence
Significant confluence exists around the $225-$235 zone. This area encompasses the key 38.2% Fibonacci retracement ($230), the psychological $225 support/resistance seen in recent trading, the region of the 50-day and 100-day MAs, and is supported by bullish signals from the MACD/KDJ and volume patterns. This strong multi-indicator support suggests resilience in this zone. A notable divergence appeared in late September; price made a lower low near $215, but the RSI held above its prior low (avoiding a higher RSI low), a classic bullish divergence hinting at underlying strength that preceded the recent bounce. While the MACD/KDJ show improving momentum, the bearish crossover of the 50-day below the 100-day MA is a conflicting signal that tempers the short-term bullishness and suggests consolidation is more likely than an immediate powerful surge.