❄️ Snowflake (SNOW): Is This the Start of a New Trend?
The AI Data Cloud Just Lit a Fire — Is It Time to Buy the Stock?
Weekend Deep Dive — Saturday, May 25, 2025
Hey traders and investors 👋
Snowflake ($SNOW) just delivered a Q1 report that turned heads — and lit a rocket under the stock. This wasn’t some weak “beat by a penny” kind of quarter. SNOW came in hot with product revenue growth, raised guidance, and a clear sign that enterprise demand for its AI Data Cloud is real and growing fast.
If you’re new here, I don’t write deep dives to repeat earnings headlines. I do it to break down the chart and walk you through how I would play it — step by step, no jargon, no nonsense. You want the story behind the candles? Let’s get into it.
🔥 First, Why It’s Back in the Spotlight
Here’s the quick rundown:
Q1 product revenue jumped 26% year-over-year.
Customers spending $1M+ grew 27% — that’s enterprise adoption accelerating.
Q2 guidance came in above expectations at $1.035–$1.040B.
FY26 guidance was raised to $4.325B.
This is a classic “beat-and-raise” quarter. And in a market hungry for AI narratives with real revenue behind them, SNOW checked every box.
Now let’s see if the chart agrees.
🧠 Technical Breakdown
📈 Trend and Price Action
Price just hit $200.05, up over 30% in a matter of weeks.
That massive pop you’re seeing? That’s your earnings reaction.
But here’s what matters now: the price is extended, yet holding up. That’s strength.
We’re just under resistance at $205.40, which marks the current 52-week high. The market respected that level with a little intraday pullback — nothing major, just hesitation.
🔧 Moving Averages
20-day SMA (blue line): ~$176.50 — That’s your near-term support level. Short-term traders should keep an eye on this if we get a dip.
50-day SMA (purple line): ~$167.00 — This one tracks medium-term trend. Still sloping up and confirming momentum.
200-day SMA (orange line): ~$160.13 — Long-term trend support and a psychological level. Price broke above it weeks ago and hasn’t looked back.
✅ The setup: Price is stacked above all 3 moving averages, and they’re sloping up. That’s textbook bullish.
💰 Support and Resistance
Support: $160.13 and $156.13 (the old base before the breakout)
Resistance: $205.40 — we’re right under it now
📌 If SNOW breaks above $205.40 on strong volume, there’s air above. Next resistance wouldn’t come in until price discovery.
📉 RSI (Relative Strength Index)
RSI is near 75, which is technically overbought.
But don’t panic — in strong trends, RSI can stay overbought for weeks.
As long as it holds near this level without sharp reversal, it’s a bullish sign.
📊 MACD
MACD line is above the signal line and both are trending upward.
Histogram bars are green and growing — this confirms momentum is still building.
This indicator supports the idea that we’re not just getting a dead cat bounce — we’re getting real upside participation.
🧭 Volume
Volume exploded on the earnings breakout — that was real money.
Last few days? Volume cooled a bit but price held. That’s bullish consolidation, not weakness.
🛠️ How I’d Trade It
🎯 For Swing Traders
Entry 1: I wouldn’t buy at $200.05 — it’s too close to resistance.
Entry on pullback: $185–$190 zone (between the 20-day and prior breakout area). That’s where I’d be interested.
Stop: Under $176 (below the 20-day SMA).
Target: $215–$225 — next psychological levels after $205 breaks.
⚠️ Don’t chase here. You’re buying a top if you enter now. Let it pull back or break out cleanly on volume.
🧱 For Long-Term Investors
Start a position now? Sure, but scale in slowly.
This isn’t a value play — you’re buying growth and AI leadership.
Add more if price tests the 50-day at ~$167 or consolidates above $185.
If you’re in it for 1–3 years, the technical setup is confirming the business story. Just know the valuation is rich (price/sales ~11x), so dips will happen.
🧩 Final Thoughts
Snowflake has real momentum, both on the business side and the chart. This isn't some sketchy small-cap AI play. This is enterprise-grade software, growing fast, with new AI features (Snowpark, Cortex AI) gaining traction.
From a chart perspective, this is what you wait for: strong breakout, volume confirmation, stacked moving averages, and clear levels to trade against.
But don’t chase. Let it either break above $205.40 and hold — or give you a dip into $185–$190. Those are your best odds.
See you tomorrow with another breakdown!
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*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.
SNOW is one of the most ridiculously overvalued stocks in the market