Snowflake Inc. (NYSE:SNOW) is in the spotlight Wednesday ahead of first-quarter earnings after the market closes.
- Snowflake shares are showing limited movement. What should traders watch with SNOW?
Analyst Expectations Heading Into Q1 Report
Analysts expect the company to report earnings per share of 32 cents, up from 24 cents per share in the year-ago period. In addition, the company is anticipated to reported revenue of $1.32 billion, compared to $1.04 billion for the same period last year.
The stock carries a consensus Buy rating with an average price target of $234.07. Notable recent moves include:
- Citizens: Market Outperform (Target $325.00) (May 19)
- Cantor Fitzgerald: Overweight (Lowered Target from $250.00 to $225.00) (May 26)
- Rosenblatt: Buy (Target $275.00) (May 21)
Long-Term Trend Looms Over Short-Term Momentum
Snowflake is trading 15.7% above its 20-day SMA ($153.66) and 16.2% above its 50-day SMA ($153.02), which signals the intermediate rebound is still intact. It's also 3.5% above the 100-day SMA ($171.79), but still 12.2% below the 200-day SMA ($202.57), keeping the longer-term trend picture mixed.
MACD is the cleaner momentum read here: it's above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing. In plain English, MACD above the signal line suggests momentum is turning up, even if the stock hasn't fully reclaimed its long-term trend.
The bigger overhang is the "death cross" from February (the 50-day SMA below the 200-day SMA), which often acts like a gravity field on rallies until price can prove it belongs back above long-term resistance. From a structure standpoint, the stock's April swing low remains the key reference point for bulls, while March's swing high is the nearer-term area traders will watch for supply.
- Key Resistance: $184.50 — a nearby pivot area that also sits close to the 200-day EMA ($184.22), where rebounds can stall
- Key Support: $145.00 — a prior buyer-defense zone that sits above the 52-week low area ($118.30), making it an important "line in the sand" if the rebound fades
Snowflake Shares Edge Lower Wednesday
SNOW Price Action: At the time of writing, Snowflake shares are trading 0.52% lower at $176.67, according to data from Benzinga Pro.
Image via Shutterstock
Login to comment