In today’s stock of the day, we turn our attention to SNAP, which is facing mounting pressure at a critical long-term support level.
The key area in question is $8.40, marked by the orange zone on the chart. This level has repeatedly proven to be a vital support for the stock. It held the price up in September 2023, again in August and September 2024, and most recently in March 2025. Monday’s session brought yet another test of this level, and so far, SNAP has bounced—but only slightly.
What’s notable is the frequency of these tests, which points to increasing vulnerability. Support levels tend to weaken with each retest, and with pressure building, a bearish breakout is starting to look more likely. The longer the price hovers near this level without a significant bounce, the higher the probability that sellers will eventually gain control.
However, it's not all doom and gloom—a strong bullish reversal candle, such as a hammer or a bullish engulfing pattern, formed near this support would signal a potential rebound and could offer a buying opportunity for traders.
The key signal to watch for remains a daily close below the $8.40 support. That would mark a significant technical breakdown and open the door to a long-term bearish trend for SNAP.