Buy the Dip in Snap? Trading Ford
Snap is retesting the breakout level. Ford is rallying to a key retracement.
The volatility continues, which has been great for scalpers and day-traders, and a bit harder for swing traders. Let’s look at a couple setups, starting with a buy-the-dip look from Snap.
Trading Snap
Snap has been a relative strength leader, not just against the Nasdaq and S&P 500, but also against its peers. Its 60% year-to-date gain easily outpaces the indices and is about double the next best social media stock’s return (FB).
Beyond that though, it has the best return over the last month, three months, six months, one year, three years and five years. That’s vs. FB, TWTR and PINS.
In short, this one has been a beast and we’re looking to buy the dip. I would love a shot at Snap in the $77.50 to $78 area — a retest of the breakout spot — along with a test of the 10-day moving average.
It’s not guaranteed to bounce, but I like the odds.
Trading Ford
As for Ford, this one has been a great long after its “ABCDE” correction down toward $12.50 and after breaking out over downtrend resistance. Up 3% to 4% in pre-market trading, the stock is nearing the 61.8% retracement of the current range.
In this choppy environment, I would be booking some of my longs here and locking in a profit. Some investors will take all their profit, while others will take none.
I like booking some and moving to a break-even stop — putting myself in a risk-free position to go higher while putting some money in my pocket.
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.