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Technical Analysis Tour de Force: Snapchat, Inc. (SNAP)

See how Elliott wave analysis anticipated SNAP’s 2017 crash based on a stock only 5 days old

by Nico Isaac
Updated: December 07, 2017

2017 has been a banner year for initial public offerings. As of November 16, the U.S. saw 123 deals come to market versus 94 in the same period last year. "We've had a pretty good run," confirmed one news source. "It's been a very active fall for IPOs." (Nov. 16 CNBC)

One of the most memorable of the bunch-- Snapchat, Inc. In case you missed the splashy, flashy headlines, here's a retrospective: On March 2, Snapchat made its debut on the New York Stock Exchange (ticker symbol SNAP) in the largest tech IPO since Alibaba went public in 2014.

To kick things off, 26-year old Snapchat co-founder Evan Spiegel -- the youngest chief executive of any company listed on the Big Board and youngest billionaire on earth-- rung the opening bell with his supermodel fiancé in tow, epitomizing how twenty-something tech nerds have officially become the new rock stars of modern culture.

After soaring 44% on its opening day, the IPO leveled off in the mid-$20 per share range. And according to the mainstream experts, the stock's barely-there past was too limited to see its future. Wrote one March 9 Yahoo! Finance:

"In just a few short trading days, it's way too early to tell if Snap will be a successful investment or public company."

The IPO, however, had plans to show its hand-- a bearish one-- right away. In the months after going public, the stock plunged 60% to see its profits vanish as rapidly as a 10-second snap.

Now, let's go back to that original idea espoused by the mainstream -- namely, that it was too early to tell if Snap would be a success right after its debut.

See, on March 8 -- five trading days after Snapchat's March 2 IPO -- our master technician Jeffrey Kennedy posted a Trader's Classroom webisode on the tech darling. In that lesson, Jeffrey showed how, with just a few price bars, technical analysis in conjunction with Elliott waves, could confidently set the bearish stage.

One of the biggest clues of SNAP's weakness was the presence of a so-called acceleration gap, a technical chart development, which helped confirm a bearish Elliott wave set-up on the market's price chart.

Go ahead and listen to Jeffrey outline the bearish road ahead with the following clip from his March 8 Trader's Classroom. Simply press play and enjoy!


 

The chart below shows exactly where the March 8 Trader's Classroom appears in SNAP's precipitous sell-off:

In Jeffrey's own words:

"Snapchat-- great idea, but be cautious of the price chart because again we can see we're working an impulsive decline. There's nothing corrective, nothing counter-trend as far as this move to the downside."

"So as far as being able to offer you not just a forecast, but a high-confidence forecast, in Snapchat, it's pretty cool that by applying the tools of technical analysis and the Elliott Wave Principle, we can [do so] with such little data."

Become THAT trader who can see high-confidence entries, get in and get out with confidence — and sleep at night.

Picture this...

Several times a week, you meet with a market veteran and he's one of the most sought-after teachers in the world. He has dedicated his entire professional career to helping traders like you spot and act on high-confidence trade setups.

At every meeting, you watch over his shoulder as he shows you exactly how to spot your market opportunity. And he doesn't just teach principles. He uses real-life market opportunities to show you the telltale signs that a market is about to move. He also coaches you on how to create your trading plan for this setup — including how to estimate upside potential and identify risk-limiting price levels.

Sound like an ideal fantasy? Well...

THAT is exactly what Jeffrey Kennedy is offering you as a Trader's Classroom subscriber!


Here's How Trader's Classroom Helps You Trade With Confidence:

3 times a week, Jeffrey uploads an exclusive 10-15 minute video for you to the Trader's Classroom subscriber area. While each lesson is not a big time commitment, it's packed with trading insights that you can instantly apply to any market. And any time frame. And you can watch and re-watch the lesson as many times as you like.

Today's lesson might be a valuable insight into a historic market setup in Gold... Tomorrow it might be an immediate trade setup in Google. In the past month alone, Jeffrey has taught valuable trading lessons using NKE, AAPL, BAC, JNJ, JPM, FB, QQQ and many more... Whatever it is, each Trader's Classroom lesson delivers lasting insights that compound to change the way you trade forever.

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Here's what you get...


You Get: Ongoing Real-Time Mentoring

Three months of Jeffrey Kennedy's Trader’s Classroom

Over the next three months, Jeffrey Kennedy is your opportunity-seeking Sherpa. He will show you opportunities and dangers in the markets. In fact, as soon as you order, you get instant access to the last three months of lessons! Some of the opportunities highlighted in these lessons are still unfolding.

Plus: A Self-Paced Learning Track

Four trader resources hand-picked from our educational library — a $286 value

Together, these 2 books and 2 online courses combine to offer the best foundation and reference guides for Elliott wave traders.


 

1
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To start, you get Elliott Wave Principle - Key to Market Behavior (a $29 value). This definitive guide to Elliott wave analysis will be your roadmap and reference guide from here on.

 

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Next, the Visual Guide to Elliott Wave Trading (a $60 value) gives essential insights on how to incorporate Elliott wave analysis into your trading style.

 

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Then, put down the books and head to a screen, for two online courses. In The Wave Principle Applied Online Course (a $99 value), Jeffrey Kennedy shows you how to spot an actionable pattern and formulate a trading strategy.

 

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And finally, get unique insights with The Kennedy Channeling Technique Online Course (a $98 value), and learn about an invaluable tool that helps give more confidence to your waves counts.


Bonus: New LIVE Trader's Classroom Lessons Every Month

As a Trader's Classroom subscriber, at least once each month, you are invited to join Jeffrey Kennedy LIVE online for an interactive Trader's Classroom lesson. During these interactive lessons, you can personally ask Jeffrey your questions about the day's lesson, get his responses in real time, and benefit from other subscribers' comments and questions, as well. And don't worry if you're unable to make the live events: We'll post recordings in your subscribers portal with your other Trader's Classroom lessons later that day.

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Three months of Trader's Classroom, plus four essential trader resources (a $433 Value):
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