Snap Inc. (SNAP), the Snapchat parent company have been one of the companies to watch out for in the social media sector since its IPO debut. Shares have generally remained in an uptrend for the most part, supported by a good outlook and forecast. The stock prices of SNAP have recently taken a leap above the Bollinger Bands with a breaching that happened on June 6th. This could be a potentially profitable opportunity for existing and potential shareholders of SNAP.
A Bollinger Band is a technical tool of analysis which is mainly used to measure and compare the volatility and trend of a stock. It comprises of two standard deviations which are calculated from a given stock’s price over a certain period of time. Therefore when a stock price breaches the Bollinger Band, it implies that the stock is experiencing higher than healthy levels of volatility. This can be used as an opportunity for short-term gains for investors.
This is particularly true for SNAP as the company continues to look for newer ways to improve its products and market further. SNAP recently announced to roll out a dedicated gaming platform which is expected to further help the company increase its user base. This could help keep up the interest of investors in the company, in addition to the bullish run that the stock has been on. The company has also seen upticks in its daily active users, which has had a positive effect on the stock prices.
The stock has currently been in an uptrend for some time and its recent breaching of the Bollinger Band could offer up a good chance to investors to reap short-term profits. For those interested in the long-term, SNAP offers a entry point owing to the string of slew of announcements that the company has lined up for the near future. All in all, as it stands now, SNAP looks poised to benefit investors in their investments possibilites.