Snap plunges 5.0% after JMP downgrade

Snap (SNAP.US) shares fell nearly 5% on Tuesday after JMP Securities downgraded the tech company to market perform from market outperform, as the amount of time spent on Snap in the US dropped by 7% YoY in Q4 2022. This represents a 7-point fall from the Q3. JMP analysts also pointed to rising competition from Reels and YouTube shorts.

Snap (SNAP.US) stock is trading nearly 89.0% below its all-time high from September 2021 at $83.30. Buyers became more active in mid-December 2022 and launched an upward correction, however bullish momentum lost its steam around major resistance at $$9.70, which coincides with 50.0% Fibonacci retracement of the last upward wave and 200 SMA (red line). As long as price sits below this level, another downward impulse towards October 2022 lows at $7.35 may be launched. On the other hand, if buyers manage to break above the aforementioned resistance zone, then the next key resistance to watch is located around November 2022 highs around $12.00. Source: xStation5