Snowflake (SNOW) Plunges 4.16% Amid Bearish Death Cross and Candlestick Signals

Snowflake (SNOW) Current Technical Analysis
Snowflake (SNOW) fell 4.16% in the most recent session, extending its decline to 4.58% over two trading days. This sharp correction aligns with bearish candlestick patterns, including a potential bearish engulfing formation and a dark cloud cover, suggesting short-term selling pressure. Key support levels to monitor include the recent swing low at $223.56 (2026-01-06) and the psychological $220 level, while resistance resides near the 50-day moving average ($230.50) and the 200-day MA ($225.00).

CANDLESTICK THEORY

The recent price action reflects a bearish bias, with consecutive lower closes and a rejection at the $230–235 range. A bearish engulfing pattern on the 2026-01-06–2026-01-07 timeframe confirms the breakdown from a prior consolidation phase. Additionally, the $223.56 support level (2026-01-06 low) has been tested twice, with a potential breakdown below this level likely to target $215–220.

MOVING AVERAGE THEORY

Short-term momentum is bearish, with the 50-day MA ($230.50) crossing below the 200-day MA ($225.00), forming a death cross. The 100-day MA ($228.00) further reinforces this bearish alignment. Price currently trades below all three MAs, indicating a downtrend. A retest of the 200-day MA could trigger a bounce, but a sustained close above the 50-day MA would signal a potential reversal.

MACD & KDJ INDICATORS

The MACD histogram has contracted, suggesting waning bearish momentum, though the MACD line (-$3.20) remains below the signal line (-$1.80), favoring continued selling. The KDJ stochastic oscillator shows %K at 25 and %D at 30, indicating oversold conditions but lacking a clear reversal signal. Divergence between %K and price (lower lows in price vs. higher lows in %K) may hint at a short-term bounce, though trend continuation remains probable.

BOLLINGER BANDS
Volatility has expanded, with the 20-day Bollinger Bands widening to $236.31 (upper) and $223.56 (lower). Price currently tests the lower band, suggesting exhaustion in the downtrend. A break below $223.56 may trigger a retest of the $215–220 range, while a rebound above the $225–230 zone could stabilize the bands.

VOLUME-PRICE RELATIONSHIP

Trading volume has spiked during the recent decline, with the two-day session on 2026-01-06–2026-01-07 seeing over 9.5 million shares traded. This volume validates the breakdown, as increased selling pressure supports the bearish thesis. However, if volume wanes during a rebound, it may indicate weak conviction in a potential reversal.

RSI

The 14-day RSI stands at 28, entering oversold territory. While this may suggest a short-term bounce, the RSI’s failure to break above 30 for multiple sessions indicates a strong downtrend. A sustained close above 35 would signal a potential reversal, though the broader bearish context remains intact.

FIBONACCI RETRACEMENT

Key Fibonacci levels from the 2025-12-04 high ($244.14) to the 2026-01-06 low ($223.52) include 23.6% at $239.00, 38.2% at $236.00, and 50% at $233.83. Price has rejected the 38.2% and 50% levels, suggesting these act as dynamic resistance. A breakdown below the 61.8% level ($229.50) may target the 78.6% level ($225.00) for further support.

CONFLUENCE AND DIVERGENCES

Confluence is evident at the $223.56 support level, where the Bollinger Band, Fibonacci 61.8%, and prior candlestick rejection converge. A breakdown here would align with bearish moving averages and oversold RSI, suggesting a high-probability continuation of the downtrend. Divergences between the KDJ oscillator and price (higher %K lows vs. lower price lows) may hint at a temporary bounce, but this remains secondary to the dominant bearish bias.

CONCLUSION

Snowflake’s technical profile highlights a strong bearish trend, supported by bearish candlestick patterns, death cross in moving averages, and oversold RSI. While short-term bounces are possible near key support levels, the confluence of indicators favors a continuation of the downtrend below $223.56. Traders should monitor volume during rebounds and watch for a potential retest of the $215–220 range as a critical juncture.