Snowflake Surges 3.44% on Bullish Candlestick Patterns and Golden Cross as Two-Day Rally Nears 6.96%

Snowflake (SNOW) has surged 3.44% in the most recent session, extending a two-day rally with a cumulative gain of 6.96%. This upward momentum is reflected in bullish candlestick patterns, particularly higher highs and higher lows over the past week, suggesting strong demand. Key support levels are likely forming around the $240–245 range, where the stock has historically found buying interest after pullbacks, while resistance appears near $265–270, where prior attempts to breach have stalled. A potential breakout above $265 could target the $275–280 zone, aligning with a 2025 peak.
Candlestick Theory
The recent price action features a "Bullish Engulfing" pattern on the 50-day chart, with the latest candle’s body entirely covering the previous bearish candle. This, combined with a "Higher High, Higher Low" structure, reinforces a short-term bullish bias. A critical support zone at $235–240, validated by multiple bounces since October, remains intact. However, a breakdown below $235 could trigger a retest of the $220–225 level, where a prior consolidation pattern was observed.
Moving Average Theory
The 50-day moving average (currently around $250) is above the 200-day MA (~$230), forming a "Golden Cross" that underscores a medium-term uptrend. The 100-day MA (~$245) acts as a dynamic support, with the stock trading above it for the past three weeks. Short-term momentum is further reinforced by the 20-day MA crossing above the 50-day MA, indicating acceleration in the near term.
MACD & KDJ Indicators
The MACD histogram has expanded in recent sessions, with the MACD line crossing above the signal line—a bullish "Golden Cross." The KDJ indicator shows the K line (~75) and D line (~68) in overbought territory, but their alignment suggests continuation of the rally rather than immediate reversal. A divergence between price and KDJ would signal caution, but for now, the indicators remain aligned with the uptrend.
Bollinger Bands
Volatility has widened recently, with the bands expanding from a narrow contraction in mid-November. The stock is currently trading near the upper Bollinger Band ($255–260), indicating overbought conditions. A pullback to the 20-day MA (~$250) could see the price consolidate within the bands, but a sustained move above the upper band may signal a continuation of the rally.
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Volume-Price Relationship
Trading volume has surged in the last two sessions, with the most recent day’s volume exceeding the 30-day average by 25%. This validates the strength of the rally and suggests institutional participation. However, if volume declines during an upward move, it may indicate waning momentum. Conversely, a spike in volume during a pullback could signal accumulation at lower levels.
Relative Strength Index (RSI)
The 14-day RSI stands at ~72, nearing overbought territory. While this typically warns of a potential correction, the stock’s strong volume and alignment with moving averages suggest the uptrend may persist. A drop below 60 would indicate weakening momentum, while a move above 75 could trigger profit-taking.
Fibonacci Retracement
Key Fibonacci levels from the October 2025 low ($220) to the November peak ($275) include 38.2% at $250 and 61.8% at $245. The current price is hovering near the 38.2% level, which has historically acted as both support and resistance. A breakout above $250 could target the 50% retracement at $255, while a failure to hold above $245 may see a retest of the 61.8% level.
Confluence and divergences are notable: the 50-day MA, Fibonacci 38.2% level, and Bollinger Band all converge near $250, creating a high-probability support zone. However, the RSI’s overbought reading and KDJ’s nearing overbought territory suggest caution, as momentum may diverge from price if volume wanes. A sustained close above $265 would strengthen the case for a continuation of the uptrend, while a breakdown below $240 would invalidate the current bullish bias.