SNOW Stock Breaks Down Below The Triangle Pattern, What Now?

• SNOW stock is following a strong downtrend and is declining to lower levels.
• According to a recent SEC filing, insiders of the company have recently sold their shares.

Snowflake Inc. is an American cloud computing and technology services company. It was founded in the year 2012 and the current CEO of the company is Frank Slootman. The Snowflake has more than 5.8K employees and the company has its headquarters in Bozeman, Montana.

The return-on-equity of the Snowflake Inc. is negative to -16.08%. The operating margin of the company is also negative resulting in -42.34%. Despite the negative ratios the price-to-book value of the company is strong resulting in 8.72.

Moreover, the current ratio of the stock is 2.30 which shows that the company is capable enough to repay its debt. The operating cycle of the company is of 46.84 days.

There are a total of 300.136M shares of the SNOW stock floating in the market. Also the beta of the stock is 2.02 making the share price of SNOW more volatile than the overall market.

Financial Performance Of SNOW Stock

The most recent results posted by Snowflake Inc. is Q2 2023 in which the revenue of the company has advanced by 35.5%. This has resulted in $674.02M in revenue and the gross profit of the company has also advanced by 41.4%. The long-term debt for the company has advanced by 22.2% and the short-term debt has advanced by 27.2%.

Will Snow Stock Continue To Decline To Further Lower Levels?

a by writer11_gsm on TradingView.com

The SNOW stock has been consistently making lower highs by taking support at equal lows. This phenomenon led to the formation of the descending triangle pattern on the daily chart. After consolidating inside the triangle pattern for more than five months, the stock recently broke down below the triangle pattern.

SNOW stock price is making a lower low swing structure and has broken below the last swing low representing the dominance of sellers in the market. This behavior of the stock price represents that the stock price might continue to decline to lower levels.

The SNOW stock has taken rejection from the 200-day EMA and since then the share price has consistently declined hitting the lows in the stock price. Also, the EMAs are following a death cross on the daily timeframe chart.

The RSI for the SNOW stock tried to advance to higher levels but failed and now has declined below the 50-level. The current value of the RSI on the daily timeframe is 34.84. 

Conclusion

The revenue of the company is consistently advancing to higher levels year-on year but the stock price is going against the revenue trend. The SNOW stock is following a downtrend and might continue to decline to further lower levels as it has broken below the triangle pattern. We might get to see the lower support levels in the SNOW stock in the upcoming days.

Technical Levels

• Support levels– $119.60 and $129.30
• Resistance levels– $166.00 and $192.00

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.