Snowflake Breaks Out to the Upside From a Great-Looking Base

Snowflake Inc. (SNOW) has come into its own on the charts this winter. Prices have broken out of what I see as a base pattern on the charts of the data platform provider. Let's check the trends and indicators to plot a strategy and look for price targets for Snowflake, which I last examined on Dec. 8.

In this daily bar chart of SNOW, below, I can see that prices have made a new high for the move up. SNOW trades above the rising 50-day moving average line and the bullish 200-day moving average line. The math-driven On-Balance-Volume (OBV) has moved higher the past year, telling me that buyers of SNOW have been more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside from above the zero line -- this is a fresh outright buy signal. 

In this weekly Japanese candlestick chart of SNOW, below, I see a bottom pattern stretching back nearly two years in duration. Prices have made a new high for the move up and trade above the rising 40-week moving average line. The weekly OBV line has also moved higher and out of a sideways pattern to confirm the price gains. The MACD oscillator turned bullish in early December. 

In this daily Point and Figure chart of SNOW, below, I can see the recent upside breakout and a price target in the $249 area.

In this second Point and Figure chart of SNOW, below, I used weekly price data. Here the software shows us the same $249 price target but the chart shows us the extent of the base pattern. Impressive.  

Bottom line strategy: Traders who are long SNOW could add to positions here. Traders with no position could go long at current levels. Raise stops to $189 for existing longs. New longs should risk $195. The $250 area is my price target for now.

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