SNAP Earnings Disappointment Puts The Kibosh On The Online Advertisers: Charts on SNAP, FB, GOOG & AMZN
By
Mike Paulenoff
Tuesday, May 24, 2022-- Mptrader.com Out Front: SNAP Earnings Disappointment Puts the Kibosh on the Online Advertisers...
Attached are my 4 Hour Charts of SNAP, FB, GOOG, and AMZN...
SNAP needs time to digest its 30% losses from last eve's technical plunge from support at 21.00 to the post-earnings low at 15.42, after which my pattern work will be expecting another roll over into lower-low territory into the 13.00 target zone. Only a climb and close above 22.00 followed by strength above 24.00 will trigger significant upside reversal signals... Last is 16.00 off of a post-EPS low at 15.42...
FB sympathetically declined 7% in reaction to SNAP's earnings report, in the process breaking support at 185-185, which leaves FB vulnerable to downside continuation that fully retests its April corrective low at 169.06, and if violated, will point to 158-162. My preferred scenario now argues for a test of the April low-zone, where I will evaluate the technical setup to determine if FB is attempting to establish a significant corrective Double Bottom... Last is 182.80...
GOOG is down 3.6% in sympathy with SNAP's weakness and its implications for the online advertising business going forward. So far, its reaction spike low is 2130, which we see on my attached chart is just above THE year-long low at 2127.46, and amid a series of positive momentum divergences, could indicate that GOOG either is at a second near term significant Double Bottom Low, or will press to one more marginal new low into the 2100 target zone prior to my expectation of a powerful upside reversal signal... Last is 2150.00...
AMZN is also under pressure, down 1.9%, but by comparison, is holding above yest's intraday low at 2079.00. That said, however, the inability of AMZN to claw its way off of its May support zone at 2048/80 to and above much more consequential resistance at 2200-2210, my near term pattern work argues for a press to new multi-month corrective lows that projects into the 1900 target area, where my work will be looking for significant upside reversal signal... Last is 2102-2110...
Bottom Line: Based on my near-term setup work, GOOG and AMZN present the "best" potential entry opportunities in the hours/days directly ahead...
